Correlation Between Perintis Triniti and Grand House

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

By analyzing existing cross correlation between Perintis Triniti Properti and Grand House Mulia, you can compare the effects of market volatilities on Perintis Triniti and Grand House 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 Perintis Triniti with a short position of Grand House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perintis Triniti and Grand House.

Diversification Opportunities for Perintis Triniti and Grand House

0.28

Correlation Coefficient

Perintis Triniti  Grand House

Modest diversification

The 3 months correlation between Perintis and Grand is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Perintis Triniti Properti and Grand House Mulia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand House Mulia and Perintis Triniti 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 Perintis Triniti Properti are associated (or correlated) with Grand House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand House Mulia has no effect on the direction of Perintis Triniti i.e., Perintis Triniti and Grand House go up and down completely randomly.

Pair Corralation between Perintis Triniti and Grand House

Assuming the 90 days trading horizon Perintis Triniti Properti is expected to under-perform the Grand House. But the stock apears to be less risky and, when comparing its historical volatility, Perintis Triniti Properti is 1.43 times less risky than Grand House. The stock trades about -0.24 of its potential returns per unit of risk. The Grand House Mulia is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  36,600  in Grand House Mulia on December 1, 2024 and sell it today you would lose (5,200) from holding Grand House Mulia or give up 14.21% of portfolio value over 90 days.

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

Perintis Triniti Properti  vs.  Grand House Mulia

Perintis Triniti Properti

Risk-Adjusted Performance

Very Weak

Over the last 90 days Perintis Triniti Properti 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Grand House Mulia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grand House Mulia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Perintis Triniti and Grand House

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

The idea behind Perintis Triniti Properti and Grand House Mulia 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.