Correlation Between Gunawan Dianjaya and Steel Pipe
Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Steel Pipe 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 Gunawan Dianjaya and Steel Pipe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunawan Dianjaya Steel and Steel Pipe Industry, you can compare the effects of market volatilities on Gunawan Dianjaya and Steel Pipe 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 Gunawan Dianjaya with a short position of Steel Pipe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Steel Pipe.
Diversification Opportunities for Gunawan Dianjaya and Steel Pipe
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunawan and Steel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Steel Pipe Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Pipe Industry and Gunawan Dianjaya 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 Gunawan Dianjaya Steel are associated (or correlated) with Steel Pipe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Pipe Industry has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Steel Pipe go up and down completely randomly.
Pair Corralation between Gunawan Dianjaya and Steel Pipe
Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to generate 1.99 times more return on investment than Steel Pipe. However, Gunawan Dianjaya is 1.99 times more volatile than Steel Pipe Industry. It trades about -0.02 of its potential returns per unit of risk. Steel Pipe Industry is currently generating about -0.18 per unit of risk. If you would invest 8,610 in Gunawan Dianjaya Steel on December 2, 2024 and sell it today you would lose (510.00) from holding Gunawan Dianjaya Steel or give up 5.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gunawan Dianjaya Steel vs. Steel Pipe Industry
Performance |
Timeline |
Gunawan Dianjaya Steel |
Steel Pipe Industry |
Gunawan Dianjaya and Steel Pipe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gunawan Dianjaya and Steel Pipe
The main advantage of trading using opposite Gunawan Dianjaya and Steel Pipe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunawan Dianjaya position performs unexpectedly, Steel Pipe 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 Steel Pipe will offset losses from the drop in Steel Pipe's long position.Gunawan Dianjaya vs. Betonjaya Manunggal Tbk | Gunawan Dianjaya vs. Lotte Chemical Titan | Gunawan Dianjaya vs. Indopoly Swakarsa Industry | Gunawan Dianjaya vs. Saranacentral Bajatama Tbk |
Steel Pipe vs. Semen Baturaja Persero | Steel Pipe vs. Bekasi Fajar Industrial | Steel Pipe vs. Krakatau Steel Persero | Steel Pipe vs. Saranacentral Bajatama Tbk |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |