Correlation Between Gaya Abadi and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Gaya Abadi and PT Sunter at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gaya Abadi and PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaya Abadi Sempurna and PT Sunter Lakeside, you can compare the effects of market volatilities on Gaya Abadi and PT Sunter and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gaya Abadi with a short position of PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaya Abadi and PT Sunter.
Diversification Opportunities for Gaya Abadi and PT Sunter
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaya and SNLK is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gaya Abadi Sempurna and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside and Gaya Abadi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gaya Abadi Sempurna are associated (or correlated) with PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Gaya Abadi i.e., Gaya Abadi and PT Sunter go up and down completely randomly.
Pair Corralation between Gaya Abadi and PT Sunter
Assuming the 90 days trading horizon Gaya Abadi Sempurna is expected to under-perform the PT Sunter. But the stock apears to be less risky and, when comparing its historical volatility, Gaya Abadi Sempurna is 1.08 times less risky than PT Sunter. The stock trades about -0.07 of its potential returns per unit of risk. The PT Sunter Lakeside is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 88,500 in PT Sunter Lakeside on September 1, 2024 and sell it today you would lose (20,000) from holding PT Sunter Lakeside or give up 22.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaya Abadi Sempurna vs. PT Sunter Lakeside
Performance |
| Timeline |
| Gaya Abadi Sempurna |
| PT Sunter Lakeside |
Gaya Abadi and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaya Abadi and PT Sunter
The main advantage of trading using opposite Gaya Abadi and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaya Abadi position performs unexpectedly, PT Sunter can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PT Sunter will offset losses from the drop in PT Sunter's long position.| Gaya Abadi vs. Pollux Properti Indonesia | Gaya Abadi vs. MNC Vision Networks | Gaya Abadi vs. Medikaloka Hermina PT | Gaya Abadi vs. Surya Permata Andalan |
| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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