Correlation Between Guna Timur and Transkon Jaya
Can any of the company-specific risk be diversified away by investing in both Guna Timur and Transkon Jaya 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 Transkon Jaya 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 Transkon Jaya Pt, you can compare the effects of market volatilities on Guna Timur and Transkon Jaya 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 Transkon Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Transkon Jaya.
Diversification Opportunities for Guna Timur and Transkon Jaya
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guna and Transkon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Transkon Jaya Pt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transkon Jaya Pt 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 Transkon Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transkon Jaya Pt has no effect on the direction of Guna Timur i.e., Guna Timur and Transkon Jaya go up and down completely randomly.
Pair Corralation between Guna Timur and Transkon Jaya
Assuming the 90 days trading horizon Guna Timur Raya is expected to generate 3.4 times more return on investment than Transkon Jaya. However, Guna Timur is 3.4 times more volatile than Transkon Jaya Pt. It trades about 0.03 of its potential returns per unit of risk. Transkon Jaya Pt is currently generating about 0.09 per unit of risk. If you would invest 7,300 in Guna Timur Raya on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Guna Timur Raya or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guna Timur Raya vs. Transkon Jaya Pt
Performance |
| Timeline |
| Guna Timur Raya |
| Transkon Jaya Pt |
Guna Timur and Transkon Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guna Timur and Transkon Jaya
The main advantage of trading using opposite Guna Timur and Transkon Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guna Timur position performs unexpectedly, Transkon Jaya 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 Transkon Jaya will offset losses from the drop in Transkon Jaya's long position.| Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific Tbk | Guna Timur vs. Weha Transportasi Indonesia |
| Transkon Jaya vs. Pelayaran Nelly Dwi | Transkon Jaya vs. Guna Timur Raya | Transkon Jaya vs. Batavia Prosperindo Trans | Transkon Jaya vs. PT Trimuda Nuansa |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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