Correlation Between Chandra Asri and Graha Andrasentra
Can any of the company-specific risk be diversified away by investing in both Chandra Asri and Graha Andrasentra 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 Chandra Asri and Graha Andrasentra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chandra Asri Petrochemical and Graha Andrasentra Propertindo, you can compare the effects of market volatilities on Chandra Asri and Graha Andrasentra 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 Chandra Asri with a short position of Graha Andrasentra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chandra Asri and Graha Andrasentra.
Diversification Opportunities for Chandra Asri and Graha Andrasentra
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chandra and Graha is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chandra Asri Petrochemical and Graha Andrasentra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graha Andrasentra and Chandra Asri 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 Chandra Asri Petrochemical are associated (or correlated) with Graha Andrasentra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graha Andrasentra has no effect on the direction of Chandra Asri i.e., Chandra Asri and Graha Andrasentra go up and down completely randomly.
Pair Corralation between Chandra Asri and Graha Andrasentra
Assuming the 90 days trading horizon Chandra Asri Petrochemical is expected to under-perform the Graha Andrasentra. But the stock apears to be less risky and, when comparing its historical volatility, Chandra Asri Petrochemical is 1.95 times less risky than Graha Andrasentra. The stock trades about -0.19 of its potential returns per unit of risk. The Graha Andrasentra Propertindo is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Graha Andrasentra Propertindo on September 2, 2024 and sell it today you would lose (100.00) from holding Graha Andrasentra Propertindo or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chandra Asri Petrochemical vs. Graha Andrasentra Propertindo
Performance |
| Timeline |
| Chandra Asri Petroch |
| Graha Andrasentra |
Chandra Asri and Graha Andrasentra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chandra Asri and Graha Andrasentra
The main advantage of trading using opposite Chandra Asri and Graha Andrasentra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chandra Asri position performs unexpectedly, Graha Andrasentra 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 Graha Andrasentra will offset losses from the drop in Graha Andrasentra's long position.| Chandra Asri vs. Perusahaan Gas Negara | Chandra Asri vs. Telkom Indonesia Tbk | Chandra Asri vs. Mitra Pinasthika Mustika | Chandra Asri vs. Jakarta Int Hotels |
| Graha Andrasentra vs. Japfa Comfeed Indonesia | Graha Andrasentra vs. Charoen Pokphand Indonesia | Graha Andrasentra vs. Erajaya Swasembada Tbk | Graha Andrasentra vs. Indofood Cbp Sukses |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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