Correlation Between VARIOUS EATERIES and PT Gudang
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and PT Gudang 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 VARIOUS EATERIES and PT Gudang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and PT Gudang Garam, you can compare the effects of market volatilities on VARIOUS EATERIES and PT Gudang 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 VARIOUS EATERIES with a short position of PT Gudang. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and PT Gudang.
Diversification Opportunities for VARIOUS EATERIES and PT Gudang
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VARIOUS and GGG is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and PT Gudang Garam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Gudang Garam and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with PT Gudang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Gudang Garam has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and PT Gudang go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and PT Gudang
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the PT Gudang. But the stock apears to be less risky and, when comparing its historical volatility, VARIOUS EATERIES LS is 3.22 times less risky than PT Gudang. The stock trades about -0.08 of its potential returns per unit of risk. The PT Gudang Garam is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 126.00 in PT Gudang Garam on September 1, 2024 and sell it today you would lose (54.00) from holding PT Gudang Garam or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. PT Gudang Garam
Performance |
| Timeline |
| VARIOUS EATERIES |
| PT Gudang Garam |
VARIOUS EATERIES and PT Gudang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and PT Gudang
The main advantage of trading using opposite VARIOUS EATERIES and PT Gudang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, PT Gudang 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 Gudang will offset losses from the drop in PT Gudang's long position.| VARIOUS EATERIES vs. USWE SPORTS AB | VARIOUS EATERIES vs. Fukuyama Transporting Co | VARIOUS EATERIES vs. Transport International Holdings | VARIOUS EATERIES vs. NetSol Technologies |
| PT Gudang vs. Chiba Bank | PT Gudang vs. Heartland Financial USA | PT Gudang vs. Pebblebrook Hotel Trust | PT Gudang vs. Playa Hotels Resorts |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |