Correlation Between Garuda Metalindo and Anabatic Technologies
Can any of the company-specific risk be diversified away by investing in both Garuda Metalindo and Anabatic Technologies 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 Garuda Metalindo and Anabatic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garuda Metalindo Tbk and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Garuda Metalindo and Anabatic Technologies 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 Garuda Metalindo with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Metalindo and Anabatic Technologies.
Diversification Opportunities for Garuda Metalindo and Anabatic Technologies
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Garuda and Anabatic is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Metalindo Tbk and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Garuda Metalindo 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 Garuda Metalindo Tbk are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Garuda Metalindo i.e., Garuda Metalindo and Anabatic Technologies go up and down completely randomly.
Pair Corralation between Garuda Metalindo and Anabatic Technologies
Assuming the 90 days trading horizon Garuda Metalindo Tbk is expected to generate 0.84 times more return on investment than Anabatic Technologies. However, Garuda Metalindo Tbk is 1.19 times less risky than Anabatic Technologies. It trades about 0.09 of its potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about 0.02 per unit of risk. If you would invest 67,448 in Garuda Metalindo Tbk on November 19, 2024 and sell it today you would earn a total of 67,552 from holding Garuda Metalindo Tbk or generate 100.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garuda Metalindo Tbk vs. Anabatic Technologies Tbk
Performance |
| Timeline |
| Garuda Metalindo Tbk |
| Anabatic Technologies Tbk |
Garuda Metalindo and Anabatic Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garuda Metalindo and Anabatic Technologies
The main advantage of trading using opposite Garuda Metalindo and Anabatic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garuda Metalindo position performs unexpectedly, Anabatic Technologies 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 Anabatic Technologies will offset losses from the drop in Anabatic Technologies' long position.| Garuda Metalindo vs. Indo Kordsa Tbk | Garuda Metalindo vs. Indospring Tbk | Garuda Metalindo vs. Kabelindo Murni Tbk | Garuda Metalindo vs. Blue Bird Tbk |
| Anabatic Technologies vs. Multipolar Technology Tbk | Anabatic Technologies vs. Abm Investama Tbk | Anabatic Technologies vs. Arita Prima Indonesia | Anabatic Technologies vs. Bali Towerindo Sentra |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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