Correlation Between Pt Pakuan and Pembangunan Graha
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan and Pembangunan Graha 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 Pt Pakuan and Pembangunan Graha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Pembangunan Graha Lestari, you can compare the effects of market volatilities on Pt Pakuan and Pembangunan Graha 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 Pt Pakuan with a short position of Pembangunan Graha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Pembangunan Graha.
Diversification Opportunities for Pt Pakuan and Pembangunan Graha
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UANG and Pembangunan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Pembangunan Graha Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembangunan Graha Lestari and Pt Pakuan 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 Pt Pakuan Tbk are associated (or correlated) with Pembangunan Graha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembangunan Graha Lestari has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Pembangunan Graha go up and down completely randomly.
Pair Corralation between Pt Pakuan and Pembangunan Graha
Assuming the 90 days trading horizon Pt Pakuan Tbk is expected to under-perform the Pembangunan Graha. But the stock apears to be less risky and, when comparing its historical volatility, Pt Pakuan Tbk is 1.29 times less risky than Pembangunan Graha. The stock trades about -0.12 of its potential returns per unit of risk. The Pembangunan Graha Lestari is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 15,900 in Pembangunan Graha Lestari on December 6, 2024 and sell it today you would lose (1,000.00) from holding Pembangunan Graha Lestari or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pt Pakuan Tbk vs. Pembangunan Graha Lestari
Performance |
| Timeline |
| Pt Pakuan Tbk |
| Pembangunan Graha Lestari |
Pt Pakuan and Pembangunan Graha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pakuan and Pembangunan Graha
The main advantage of trading using opposite Pt Pakuan and Pembangunan Graha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan position performs unexpectedly, Pembangunan Graha 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 Pembangunan Graha will offset losses from the drop in Pembangunan Graha's long position.| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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