Correlation Between MD Pictures and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both MD Pictures 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 MD Pictures and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MD Pictures Tbk and Garudafood Putra Putri, you can compare the effects of market volatilities on MD Pictures 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 MD Pictures with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of MD Pictures and Garudafood Putra.
Diversification Opportunities for MD Pictures and Garudafood Putra
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FILM and Garudafood is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding MD Pictures Tbk 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 MD Pictures 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 MD Pictures Tbk 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 MD Pictures i.e., MD Pictures and Garudafood Putra go up and down completely randomly.
Pair Corralation between MD Pictures and Garudafood Putra
Assuming the 90 days trading horizon MD Pictures Tbk is expected to under-perform the Garudafood Putra. In addition to that, MD Pictures is 2.46 times more volatile than Garudafood Putra Putri. It trades about -0.03 of its total potential returns per unit of risk. Garudafood Putra Putri is currently generating about 0.01 per unit of volatility. If you would invest 39,800 in Garudafood Putra Putri on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Garudafood Putra Putri or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MD Pictures Tbk vs. Garudafood Putra Putri
Performance |
| Timeline |
| MD Pictures Tbk |
| Garudafood Putra Putri |
MD Pictures and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MD Pictures and Garudafood Putra
The main advantage of trading using opposite MD Pictures and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MD Pictures 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.| MD Pictures vs. MNC Studios International | MD Pictures vs. Elang Mahkota Teknologi | MD Pictures vs. Medikaloka Hermina PT | MD Pictures vs. Surya Esa Perkasa |
| Garudafood Putra vs. Bank BRISyariah Tbk | Garudafood Putra vs. Mitra Pinasthika Mustika | Garudafood Putra vs. Jakarta Int Hotels | Garudafood Putra vs. Indosterling Technomedia 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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