Correlation Between Bhuwanatala Indah and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Bhuwanatala Indah and Garudafood Putra 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 Bhuwanatala Indah and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bhuwanatala Indah Permai and Garudafood Putra Putri, you can compare the effects of market volatilities on Bhuwanatala Indah and Garudafood Putra 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 Bhuwanatala Indah with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhuwanatala Indah and Garudafood Putra.
Diversification Opportunities for Bhuwanatala Indah and Garudafood Putra
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bhuwanatala and Garudafood is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bhuwanatala Indah Permai and Garudafood Putra Putri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garudafood Putra Putri and Bhuwanatala Indah 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 Bhuwanatala Indah Permai are associated (or correlated) with Garudafood Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garudafood Putra Putri has no effect on the direction of Bhuwanatala Indah i.e., Bhuwanatala Indah and Garudafood Putra go up and down completely randomly.
Pair Corralation between Bhuwanatala Indah and Garudafood Putra
Assuming the 90 days trading horizon Bhuwanatala Indah Permai is expected to generate 0.9 times more return on investment than Garudafood Putra. However, Bhuwanatala Indah Permai is 1.11 times less risky than Garudafood Putra. It trades about 0.12 of its potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.05 per unit of risk. If you would invest 3,000 in Bhuwanatala Indah Permai on August 30, 2024 and sell it today you would earn a total of 200.00 from holding Bhuwanatala Indah Permai or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bhuwanatala Indah Permai vs. Garudafood Putra Putri
Performance |
| Timeline |
| Bhuwanatala Indah Permai |
| Garudafood Putra Putri |
Bhuwanatala Indah and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bhuwanatala Indah and Garudafood Putra
The main advantage of trading using opposite Bhuwanatala Indah and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhuwanatala Indah position performs unexpectedly, Garudafood Putra 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 Garudafood Putra will offset losses from the drop in Garudafood Putra's long position.| Bhuwanatala Indah vs. Duta Anggada Realty | Bhuwanatala Indah vs. Bukit Darmo Property | Bhuwanatala Indah vs. Duta Pertiwi Tbk | Bhuwanatala Indah vs. Bintang Mitra Semestaraya |
| Garudafood Putra vs. Sariguna Primatirta PT | Garudafood Putra vs. Ultra Jaya Milk | Garudafood Putra vs. Nippon Indosari Corpindo | Garudafood Putra vs. Kino Indonesia Tbk |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |