Correlation Between Guna Timur and Sunindo Adipersada
Can any of the company-specific risk be diversified away by investing in both Guna Timur and Sunindo Adipersada 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 Sunindo Adipersada 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 Sunindo Adipersada Tbk, you can compare the effects of market volatilities on Guna Timur and Sunindo Adipersada 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 Sunindo Adipersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Sunindo Adipersada.
Diversification Opportunities for Guna Timur and Sunindo Adipersada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guna and Sunindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Sunindo Adipersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunindo Adipersada Tbk 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 Sunindo Adipersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunindo Adipersada Tbk has no effect on the direction of Guna Timur i.e., Guna Timur and Sunindo Adipersada go up and down completely randomly.
Pair Corralation between Guna Timur and Sunindo Adipersada
Assuming the 90 days trading horizon Guna Timur Raya is expected to generate 1.09 times more return on investment than Sunindo Adipersada. However, Guna Timur is 1.09 times more volatile than Sunindo Adipersada Tbk. It trades about 0.0 of its potential returns per unit of risk. Sunindo Adipersada Tbk is currently generating about -0.13 per unit of risk. If you would invest 10,700 in Guna Timur Raya on September 1, 2024 and sell it today you would lose (2,600) from holding Guna Timur Raya or give up 24.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guna Timur Raya vs. Sunindo Adipersada Tbk
Performance |
| Timeline |
| Guna Timur Raya |
| Sunindo Adipersada Tbk |
Guna Timur and Sunindo Adipersada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guna Timur and Sunindo Adipersada
The main advantage of trading using opposite Guna Timur and Sunindo Adipersada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guna Timur position performs unexpectedly, Sunindo Adipersada 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 Sunindo Adipersada will offset losses from the drop in Sunindo Adipersada'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 |
| Sunindo Adipersada vs. Guna Timur Raya | Sunindo Adipersada vs. Yelooo Integra Datanet | Sunindo Adipersada vs. Agro Yasa Lestari | Sunindo Adipersada vs. Sinergi Inti Plastindo |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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