Correlation Between Universal and PT Gudang
Can any of the company-specific risk be diversified away by investing in both Universal and PT Gudang 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 Universal and PT Gudang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal and PT Gudang Garam, you can compare the effects of market volatilities on Universal and PT Gudang 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 Universal with a short position of PT Gudang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal and PT Gudang.
Diversification Opportunities for Universal and PT Gudang
Pay attention - limited upside
The 3 months correlation between Universal and GGNPF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Universal and PT Gudang Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gudang Garam and Universal 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 Universal are associated (or correlated) with PT Gudang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gudang Garam has no effect on the direction of Universal i.e., Universal and PT Gudang go up and down completely randomly.
Pair Corralation between Universal and PT Gudang
If you would invest 5,092 in Universal on September 1, 2024 and sell it today you would earn a total of 620.00 from holding Universal or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal vs. PT Gudang Garam
Performance |
| Timeline |
| Universal |
| PT Gudang Garam |
Universal and PT Gudang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal and PT Gudang
The main advantage of trading using opposite Universal and PT Gudang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal position performs unexpectedly, PT Gudang 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 PT Gudang will offset losses from the drop in PT Gudang's long position.| Universal vs. Imperial Brands PLC | Universal vs. Japan Tobacco ADR | Universal vs. Philip Morris International | Universal vs. Turning Point Brands |
| PT Gudang vs. Imperial Brands PLC | PT Gudang vs. Turning Point Brands | PT Gudang vs. Universal | PT Gudang vs. Japan Tobacco ADR |
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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