Correlation Between PT Gudang and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both PT Gudang and FAST RETAIL 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 PT Gudang and FAST RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Gudang Garam and FAST RETAIL ADR, you can compare the effects of market volatilities on PT Gudang and FAST RETAIL 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 PT Gudang with a short position of FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Gudang and FAST RETAIL.
Diversification Opportunities for PT Gudang and FAST RETAIL
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GGG and FAST is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding PT Gudang Garam and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR and PT Gudang 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 PT Gudang Garam are associated (or correlated) with FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of PT Gudang i.e., PT Gudang and FAST RETAIL go up and down completely randomly.
Pair Corralation between PT Gudang and FAST RETAIL
Assuming the 90 days horizon PT Gudang Garam is expected to under-perform the FAST RETAIL. In addition to that, PT Gudang is 2.61 times more volatile than FAST RETAIL ADR. It trades about -0.01 of its total potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.09 per unit of volatility. If you would invest 2,010 in FAST RETAIL ADR on September 12, 2024 and sell it today you would earn a total of 1,330 from holding FAST RETAIL ADR or generate 66.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Gudang Garam vs. FAST RETAIL ADR
Performance |
| Timeline |
| PT Gudang Garam |
| FAST RETAIL ADR |
PT Gudang and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Gudang and FAST RETAIL
The main advantage of trading using opposite PT Gudang and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Gudang position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| PT Gudang vs. FAST RETAIL ADR | PT Gudang vs. Tradeweb Markets | PT Gudang vs. Tradegate AG Wertpapierhandelsbank | PT Gudang vs. Bausch Health Companies |
| FAST RETAIL vs. CCC SA | FAST RETAIL vs. AOYAMA TRADING | FAST RETAIL vs. Superior Plus Corp | FAST RETAIL vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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