Correlation Between Visi Media and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Visi Media and Grand Kartech 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 Visi Media and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visi Media Asia and Grand Kartech Tbk, you can compare the effects of market volatilities on Visi Media and Grand Kartech 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 Visi Media with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visi Media and Grand Kartech.
Diversification Opportunities for Visi Media and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visi and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visi Media Asia and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk and Visi Media 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 Visi Media Asia are associated (or correlated) with Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Visi Media i.e., Visi Media and Grand Kartech go up and down completely randomly.
Pair Corralation between Visi Media and Grand Kartech
If you would invest 43,600 in Grand Kartech Tbk on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visi Media Asia vs. Grand Kartech Tbk
Performance |
| Timeline |
| Visi Media Asia |
| Grand Kartech Tbk |
Visi Media and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visi Media and Grand Kartech
The main advantage of trading using opposite Visi Media and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visi Media position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.| Visi Media vs. Indosat Tbk | Visi Media vs. XL Axiata Tbk | Visi Media vs. Energi Mega Persada | Visi Media vs. Bakrie Brothers Tbk |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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