Correlation Between Garuda Metalindo and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both Garuda Metalindo and Indosterling Technomedia 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 Indosterling Technomedia 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 Indosterling Technomedia Tbk, you can compare the effects of market volatilities on Garuda Metalindo and Indosterling Technomedia 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 Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Metalindo and Indosterling Technomedia.
Diversification Opportunities for Garuda Metalindo and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Garuda and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Metalindo Tbk and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia 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 Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of Garuda Metalindo i.e., Garuda Metalindo and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between Garuda Metalindo and Indosterling Technomedia
If you would invest 108,000 in Garuda Metalindo Tbk on August 28, 2024 and sell it today you would earn a total of 7,500 from holding Garuda Metalindo Tbk or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garuda Metalindo Tbk vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| Garuda Metalindo Tbk |
| Indosterling Technomedia |
Garuda Metalindo and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garuda Metalindo and Indosterling Technomedia
The main advantage of trading using opposite Garuda Metalindo and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garuda Metalindo position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia'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 |
| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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