Correlation Between Garuda Indonesia and Intermedia Capital
Can any of the company-specific risk be diversified away by investing in both Garuda Indonesia and Intermedia Capital 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 Indonesia and Intermedia Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garuda Indonesia Persero and Intermedia Capital Tbk, you can compare the effects of market volatilities on Garuda Indonesia and Intermedia Capital 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 Indonesia with a short position of Intermedia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Indonesia and Intermedia Capital.
Diversification Opportunities for Garuda Indonesia and Intermedia Capital
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Garuda and Intermedia is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Indonesia Persero and Intermedia Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedia Capital Tbk and Garuda Indonesia 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 Indonesia Persero are associated (or correlated) with Intermedia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedia Capital Tbk has no effect on the direction of Garuda Indonesia i.e., Garuda Indonesia and Intermedia Capital go up and down completely randomly.
Pair Corralation between Garuda Indonesia and Intermedia Capital
Assuming the 90 days trading horizon Garuda Indonesia Persero is expected to under-perform the Intermedia Capital. But the stock apears to be less risky and, when comparing its historical volatility, Garuda Indonesia Persero is 2.71 times less risky than Intermedia Capital. The stock trades about -0.43 of its potential returns per unit of risk. The Intermedia Capital Tbk is currently generating about 0.8 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Intermedia Capital Tbk on December 11, 2024 and sell it today you would earn a total of 3,200 from holding Intermedia Capital Tbk or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garuda Indonesia Persero vs. Intermedia Capital Tbk
Performance |
| Timeline |
| Garuda Indonesia Persero |
| Intermedia Capital Tbk |
Garuda Indonesia and Intermedia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garuda Indonesia and Intermedia Capital
The main advantage of trading using opposite Garuda Indonesia and Intermedia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garuda Indonesia position performs unexpectedly, Intermedia Capital 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 Intermedia Capital will offset losses from the drop in Intermedia Capital's long position.| Garuda Indonesia vs. Krakatau Steel Persero | ||
| Garuda Indonesia vs. Jasa Marga Tbk | ||
| Garuda Indonesia vs. Wijaya Karya Beton | ||
| Garuda Indonesia vs. Adhi Karya Persero |
| Intermedia Capital vs. Visi Media Asia | ||
| Intermedia Capital vs. Mnc Sky Vision | ||
| Intermedia Capital vs. Mahaka Radio Integra | ||
| Intermedia Capital vs. Mnc Land 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |