Correlation Between Guna Timur and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Guna Timur and Sinergi Inti 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 Guna Timur and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guna Timur Raya and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Guna Timur and Sinergi Inti 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 Guna Timur with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Sinergi Inti.
Diversification Opportunities for Guna Timur and Sinergi Inti
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guna and Sinergi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Guna Timur 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 Guna Timur Raya are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Guna Timur i.e., Guna Timur and Sinergi Inti go up and down completely randomly.
Pair Corralation between Guna Timur and Sinergi Inti
Assuming the 90 days trading horizon Guna Timur Raya is expected to generate 0.54 times more return on investment than Sinergi Inti. However, Guna Timur Raya is 1.85 times less risky than Sinergi Inti. It trades about 0.56 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about 0.16 per unit of risk. If you would invest 8,400 in Guna Timur Raya on November 3, 2024 and sell it today you would earn a total of 1,800 from holding Guna Timur Raya or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Guna Timur Raya vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Guna Timur Raya |
| Sinergi Inti Plastindo |
Guna Timur and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guna Timur and Sinergi Inti
The main advantage of trading using opposite Guna Timur and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guna Timur position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Guna Timur vs. Sriwahana | Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific Tbk |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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