Correlation Between PT Sunter and Gaya Abadi
Can any of the company-specific risk be diversified away by investing in both PT Sunter and Gaya Abadi 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 PT Sunter and Gaya Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Sunter Lakeside and Gaya Abadi Sempurna, you can compare the effects of market volatilities on PT Sunter and Gaya Abadi 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 PT Sunter with a short position of Gaya Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Sunter and Gaya Abadi.
Diversification Opportunities for PT Sunter and Gaya Abadi
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SNLK and Gaya is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PT Sunter Lakeside and Gaya Abadi Sempurna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaya Abadi Sempurna and PT Sunter 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 PT Sunter Lakeside are associated (or correlated) with Gaya Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaya Abadi Sempurna has no effect on the direction of PT Sunter i.e., PT Sunter and Gaya Abadi go up and down completely randomly.
Pair Corralation between PT Sunter and Gaya Abadi
Assuming the 90 days trading horizon PT Sunter Lakeside is expected to generate 1.89 times more return on investment than Gaya Abadi. However, PT Sunter is 1.89 times more volatile than Gaya Abadi Sempurna. It trades about 0.03 of its potential returns per unit of risk. Gaya Abadi Sempurna is currently generating about 0.01 per unit of risk. If you would invest 66,000 in PT Sunter Lakeside on August 31, 2024 and sell it today you would earn a total of 2,500 from holding PT Sunter Lakeside or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
PT Sunter Lakeside vs. Gaya Abadi Sempurna
Performance |
| Timeline |
| PT Sunter Lakeside |
| Gaya Abadi Sempurna |
PT Sunter and Gaya Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Sunter and Gaya Abadi
The main advantage of trading using opposite PT Sunter and Gaya Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Sunter position performs unexpectedly, Gaya Abadi 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 Gaya Abadi will offset losses from the drop in Gaya Abadi's long position.| PT Sunter vs. Gaya Abadi Sempurna | PT Sunter vs. Damai Sejahtera Abadi | PT Sunter vs. Red Planet Indonesia | PT Sunter vs. PAM Mineral Tbk |
| Gaya Abadi vs. Multipolar Technology Tbk | Gaya Abadi vs. Hensel Davest Indonesia | Gaya Abadi vs. Anabatic Technologies Tbk | Gaya Abadi vs. Digital Mediatama Maxima |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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