Correlation Between Dana Brata and Gaya Abadi

Can any of the company-specific risk be diversified away by investing in both Dana Brata and Gaya Abadi 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 Dana Brata and Gaya Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dana Brata Luhur and Gaya Abadi Sempurna, you can compare the effects of market volatilities on Dana Brata and Gaya Abadi 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 Dana Brata with a short position of Gaya Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Brata and Gaya Abadi.

Diversification Opportunities for Dana Brata and Gaya Abadi

0.0

Correlation Coefficient

Dana Brata  Gaya Abadi

Pay attention - limited upside

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

Pair Corralation between Dana Brata and Gaya Abadi

If you would invest  62,500  in Dana Brata Luhur on December 29, 2024 and sell it today you would earn a total of  9,000  from holding Dana Brata Luhur or generate 14.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Dana Brata Luhur  vs.  Gaya Abadi Sempurna

Dana Brata Luhur

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Brata Luhur are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Dana Brata disclosed solid returns over the last few months and may actually be approaching a breakup point.

Gaya Abadi Sempurna

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Dana Brata and Gaya Abadi

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

The idea behind Dana Brata Luhur and Gaya Abadi Sempurna 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.