Correlation Between Grand Kartech and PT Wahana
Can any of the company-specific risk be diversified away by investing in both Grand Kartech and PT Wahana 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 PT Wahana 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 PT Wahana Interfood, you can compare the effects of market volatilities on Grand Kartech and PT Wahana 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 PT Wahana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and PT Wahana.
Diversification Opportunities for Grand Kartech and PT Wahana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and COCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk and PT Wahana Interfood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wahana Interfood 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 PT Wahana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wahana Interfood has no effect on the direction of Grand Kartech i.e., Grand Kartech and PT Wahana go up and down completely randomly.
Pair Corralation between Grand Kartech and PT Wahana
If you would invest 43,600 in Grand Kartech Tbk on November 30, 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 | 98.28% |
Values | Daily Returns |
Grand Kartech Tbk vs. PT Wahana Interfood
Performance |
Timeline |
Grand Kartech Tbk |
PT Wahana Interfood |
Grand Kartech and PT Wahana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grand Kartech and PT Wahana
The main advantage of trading using opposite Grand Kartech and PT Wahana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Kartech position performs unexpectedly, PT Wahana 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 PT Wahana will offset losses from the drop in PT Wahana's long position.Grand Kartech vs. Weha Transportasi Indonesia | Grand Kartech vs. Dyandra Media International | Grand Kartech vs. Inocycle Technology Tbk | Grand Kartech vs. Indosterling Technomedia Tbk |
PT Wahana vs. Garudafood Putra Putri | PT Wahana vs. Sentra Food Indonesia | PT Wahana vs. Campina Ice Cream | PT Wahana vs. Diamond Food Indonesia |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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