Correlation Between Guna Timur and Putra Rajawali
Can any of the company-specific risk be diversified away by investing in both Guna Timur and Putra Rajawali 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 Putra Rajawali 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 Putra Rajawali Kencana, you can compare the effects of market volatilities on Guna Timur and Putra Rajawali 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 Putra Rajawali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Putra Rajawali.
Diversification Opportunities for Guna Timur and Putra Rajawali
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guna and Putra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Putra Rajawali Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Rajawali Kencana 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 Putra Rajawali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Rajawali Kencana has no effect on the direction of Guna Timur i.e., Guna Timur and Putra Rajawali go up and down completely randomly.
Pair Corralation between Guna Timur and Putra Rajawali
Assuming the 90 days trading horizon Guna Timur Raya is expected to under-perform the Putra Rajawali. In addition to that, Guna Timur is 1.07 times more volatile than Putra Rajawali Kencana. It trades about -0.17 of its total potential returns per unit of risk. Putra Rajawali Kencana is currently generating about -0.15 per unit of volatility. If you would invest 1,600 in Putra Rajawali Kencana on September 1, 2024 and sell it today you would lose (300.00) from holding Putra Rajawali Kencana or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guna Timur Raya vs. Putra Rajawali Kencana
Performance |
| Timeline |
| Guna Timur Raya |
| Putra Rajawali Kencana |
Guna Timur and Putra Rajawali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guna Timur and Putra Rajawali
The main advantage of trading using opposite Guna Timur and Putra Rajawali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guna Timur position performs unexpectedly, Putra Rajawali 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 Putra Rajawali will offset losses from the drop in Putra Rajawali's long position.| Guna Timur vs. Sinergi Inti Plastindo | Guna Timur vs. Hartadinata Abadi Tbk | Guna Timur vs. Weha Transportasi Indonesia | Guna Timur vs. Dewata Freight International |
| Putra Rajawali vs. Guna Timur Raya | Putra Rajawali vs. Sinergi Inti Plastindo | Putra Rajawali vs. Hartadinata Abadi Tbk | Putra Rajawali vs. Weha Transportasi Indonesia |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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