Correlation Between Guna Timur and Yelooo Integra

Can any of the company-specific risk be diversified away by investing in both Guna Timur and Yelooo Integra 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 Guna Timur and Yelooo Integra into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guna Timur Raya and Yelooo Integra Datanet, you can compare the effects of market volatilities on Guna Timur and Yelooo Integra 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 Guna Timur with a short position of Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guna Timur and Yelooo Integra.

Diversification Opportunities for Guna Timur and Yelooo Integra

0.56

Correlation Coefficient

Guna Timur  Yelooo Integra

Very weak diversification

The 3 months correlation between Guna and Yelooo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guna Timur Raya and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet and Guna Timur 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 Guna Timur Raya are associated (or correlated) with Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of Guna Timur i.e., Guna Timur and Yelooo Integra go up and down completely randomly.

Pair Corralation between Guna Timur and Yelooo Integra

Assuming the 90 days trading horizon Guna Timur is expected to generate 1.93 times less return on investment than Yelooo Integra. But when comparing it to its historical volatility, Guna Timur Raya is 2.43 times less risky than Yelooo Integra. It trades about 0.19 of its potential returns per unit of risk. Yelooo Integra Datanet is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,500  in Yelooo Integra Datanet on December 21, 2024 and sell it today you would earn a total of  800.00  from holding Yelooo Integra Datanet or generate 53.33% return on investment over 90 days.

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

Guna Timur Raya  vs.  Yelooo Integra Datanet

Guna Timur Raya

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guna Timur Raya are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Guna Timur disclosed solid returns over the last few months and may actually be approaching a breakup point.

Yelooo Integra Datanet

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Yelooo Integra Datanet are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Yelooo Integra disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Guna Timur and Yelooo Integra

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

The idea behind Guna Timur Raya and Yelooo Integra Datanet 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.