Correlation Between Garuda Metalindo and Rimo International
Can any of the company-specific risk be diversified away by investing in both Garuda Metalindo and Rimo International 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 Rimo International 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 Rimo International Lestari, you can compare the effects of market volatilities on Garuda Metalindo and Rimo International 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 Rimo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Metalindo and Rimo International.
Diversification Opportunities for Garuda Metalindo and Rimo International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Garuda and Rimo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Metalindo Tbk and Rimo International Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimo International 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 Rimo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimo International has no effect on the direction of Garuda Metalindo i.e., Garuda Metalindo and Rimo International go up and down completely randomly.
Pair Corralation between Garuda Metalindo and Rimo International
If you would invest 84,116 in Garuda Metalindo Tbk on September 12, 2024 and sell it today you would earn a total of 45,884 from holding Garuda Metalindo Tbk or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
Garuda Metalindo Tbk vs. Rimo International Lestari
Performance |
| Timeline |
| Garuda Metalindo Tbk |
| Rimo International |
Garuda Metalindo and Rimo International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garuda Metalindo and Rimo International
The main advantage of trading using opposite Garuda Metalindo and Rimo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garuda Metalindo position performs unexpectedly, Rimo International 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 Rimo International will offset losses from the drop in Rimo International's long position.| Garuda Metalindo vs. PT Indonesia Kendaraan | Garuda Metalindo vs. Surya Toto Indonesia | Garuda Metalindo vs. Mitra Pinasthika Mustika | Garuda Metalindo vs. Integra Indocabinet Tbk |
| Rimo International vs. Smartfren Telecom Tbk | Rimo International vs. Steel Pipe Industry | Rimo International vs. Garuda Metalindo Tbk | Rimo International vs. Merdeka Copper Gold |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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