Correlation Between Gunawan Dianjaya and Slj Global

Can any of the company-specific risk be diversified away by investing in both Gunawan Dianjaya and Slj Global 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 Slj Global 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 Slj Global Tbk, you can compare the effects of market volatilities on Gunawan Dianjaya and Slj Global 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 Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunawan Dianjaya and Slj Global.

Diversification Opportunities for Gunawan Dianjaya and Slj Global

0.91

Correlation Coefficient

Gunawan Dianjaya  Slj Global

Almost no diversification

The 3 months correlation between Gunawan and Slj is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gunawan Dianjaya Steel and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global Tbk 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 Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Gunawan Dianjaya i.e., Gunawan Dianjaya and Slj Global go up and down completely randomly.

Pair Corralation between Gunawan Dianjaya and Slj Global

Assuming the 90 days trading horizon Gunawan Dianjaya Steel is expected to under-perform the Slj Global. In addition to that, Gunawan Dianjaya is 1.74 times more volatile than Slj Global Tbk. It trades about -0.27 of its total potential returns per unit of risk. Slj Global Tbk is currently generating about -0.23 per unit of volatility. If you would invest  9,000  in Slj Global Tbk on September 1, 2024 and sell it today you would lose (1,000.00) from holding Slj Global Tbk or give up 11.11% of portfolio value over 90 days.

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

Gunawan Dianjaya Steel  vs.  Slj Global Tbk

Gunawan Dianjaya Steel

Risk-Adjusted Performance

0 of 100

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 December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Slj Global Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Slj Global Tbk 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 December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Gunawan Dianjaya and Slj Global

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

The idea behind Gunawan Dianjaya Steel and Slj Global Tbk 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.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.