Correlation Between Grand Kartech and Bukit Uluwatu

Can any of the company-specific risk be diversified away by investing in both Grand Kartech and Bukit Uluwatu 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 Grand Kartech and Bukit Uluwatu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grand Kartech Tbk and Bukit Uluwatu Villa, you can compare the effects of market volatilities on Grand Kartech and Bukit Uluwatu 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 Grand Kartech with a short position of Bukit Uluwatu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and Bukit Uluwatu.

Diversification Opportunities for Grand Kartech and Bukit Uluwatu

0.0

Correlation Coefficient

Grand Kartech  Bukit Uluwatu

Pay attention - limited upside

The 3 months correlation between Grand and Bukit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk and Bukit Uluwatu Villa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Uluwatu Villa and Grand Kartech 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 Grand Kartech Tbk are associated (or correlated) with Bukit Uluwatu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Uluwatu Villa has no effect on the direction of Grand Kartech i.e., Grand Kartech and Bukit Uluwatu go up and down completely randomly.

Pair Corralation between Grand Kartech and Bukit Uluwatu

If you would invest  5,800  in Bukit Uluwatu Villa on December 27, 2024 and sell it today you would earn a total of  1,400  from holding Bukit Uluwatu Villa or generate 24.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Grand Kartech Tbk  vs.  Bukit Uluwatu Villa

Grand Kartech Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grand Kartech Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Grand Kartech is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bukit Uluwatu Villa

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bukit Uluwatu Villa are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Bukit Uluwatu disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grand Kartech and Bukit Uluwatu

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

The idea behind Grand Kartech Tbk and Bukit Uluwatu Villa 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.