Correlation Between Garuda Metalindo and PT Jobubu
Can any of the company-specific risk be diversified away by investing in both Garuda Metalindo and PT Jobubu 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 PT Jobubu 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 PT Jobubu Jarum, you can compare the effects of market volatilities on Garuda Metalindo and PT Jobubu 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 PT Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Metalindo and PT Jobubu.
Diversification Opportunities for Garuda Metalindo and PT Jobubu
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Garuda and BEER is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Metalindo Tbk and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum 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 PT Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of Garuda Metalindo i.e., Garuda Metalindo and PT Jobubu go up and down completely randomly.
Pair Corralation between Garuda Metalindo and PT Jobubu
Assuming the 90 days trading horizon Garuda Metalindo Tbk is expected to generate 0.58 times more return on investment than PT Jobubu. However, Garuda Metalindo Tbk is 1.72 times less risky than PT Jobubu. It trades about 0.09 of its potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.05 per unit of risk. If you would invest 69,309 in Garuda Metalindo Tbk on November 27, 2024 and sell it today you would earn a total of 64,691 from holding Garuda Metalindo Tbk or generate 93.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garuda Metalindo Tbk vs. PT Jobubu Jarum
Performance |
| Timeline |
| Garuda Metalindo Tbk |
| PT Jobubu Jarum |
Garuda Metalindo and PT Jobubu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garuda Metalindo and PT Jobubu
The main advantage of trading using opposite Garuda Metalindo and PT Jobubu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garuda Metalindo position performs unexpectedly, PT Jobubu 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 Jobubu will offset losses from the drop in PT Jobubu's 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 |
| PT Jobubu vs. Cisarua Mountain Dairy | PT Jobubu vs. Triputra Agro Persada | PT Jobubu vs. Wahana Inti MakmurTbk | PT Jobubu vs. PT Hasnur Internasional |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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