Correlation Between PT Jobubu and Gunawan Dianjaya

Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Gunawan Dianjaya 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 Jobubu and Gunawan Dianjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Jobubu Jarum and Gunawan Dianjaya Steel, you can compare the effects of market volatilities on PT Jobubu and Gunawan Dianjaya 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 Jobubu with a short position of Gunawan Dianjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Gunawan Dianjaya.

Diversification Opportunities for PT Jobubu and Gunawan Dianjaya

0.77

Correlation Coefficient

PT Jobubu  Gunawan Dianjaya

Poor diversification

The 3 months correlation between BEER and Gunawan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Gunawan Dianjaya Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunawan Dianjaya Steel and PT Jobubu 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 Jobubu Jarum are associated (or correlated) with Gunawan Dianjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunawan Dianjaya Steel has no effect on the direction of PT Jobubu i.e., PT Jobubu and Gunawan Dianjaya go up and down completely randomly.

Pair Corralation between PT Jobubu and Gunawan Dianjaya

Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Gunawan Dianjaya. In addition to that, PT Jobubu is 1.89 times more volatile than Gunawan Dianjaya Steel. It trades about -0.25 of its total potential returns per unit of risk. Gunawan Dianjaya Steel is currently generating about -0.18 per unit of volatility. If you would invest  9,600  in Gunawan Dianjaya Steel on December 30, 2024 and sell it today you would lose (1,700) from holding Gunawan Dianjaya Steel or give up 17.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PT Jobubu Jarum  vs.  Gunawan Dianjaya Steel

PT Jobubu Jarum

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Jobubu Jarum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Gunawan Dianjaya Steel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gunawan Dianjaya Steel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PT Jobubu and Gunawan Dianjaya

The main advantage of trading using opposite PT Jobubu and Gunawan Dianjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Gunawan Dianjaya 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 Gunawan Dianjaya will offset losses from the drop in Gunawan Dianjaya's long position.

The idea behind PT Jobubu Jarum and Gunawan Dianjaya Steel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.