Correlation Between Garudafood Putra and PT Multitrend
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Multitrend 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 Garudafood Putra and PT Multitrend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garudafood Putra Putri and PT Multitrend Indo, you can compare the effects of market volatilities on Garudafood Putra and PT Multitrend 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 Garudafood Putra with a short position of PT Multitrend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Multitrend.
Diversification Opportunities for Garudafood Putra and PT Multitrend
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Garudafood and BABY is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Multitrend Indo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Multitrend Indo and Garudafood Putra 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 Garudafood Putra Putri are associated (or correlated) with PT Multitrend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Multitrend Indo has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Multitrend go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Multitrend
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the PT Multitrend. But the stock apears to be less risky and, when comparing its historical volatility, Garudafood Putra Putri is 3.93 times less risky than PT Multitrend. The stock trades about -0.03 of its potential returns per unit of risk. The PT Multitrend Indo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 29,000 in PT Multitrend Indo on August 30, 2024 and sell it today you would earn a total of 1,400 from holding PT Multitrend Indo or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 62.58% |
| Values | Daily Returns |
Garudafood Putra Putri vs. PT Multitrend Indo
Performance |
| Timeline |
| Garudafood Putra Putri |
| PT Multitrend Indo |
Garudafood Putra and PT Multitrend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and PT Multitrend
The main advantage of trading using opposite Garudafood Putra and PT Multitrend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Multitrend 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 PT Multitrend will offset losses from the drop in PT Multitrend's long position.| Garudafood Putra vs. Sariguna Primatirta PT | Garudafood Putra vs. Ultra Jaya Milk | Garudafood Putra vs. Nippon Indosari Corpindo | Garudafood Putra vs. Kino Indonesia Tbk |
| PT Multitrend vs. Metro Healthcare Indonesia | PT Multitrend vs. Indofood Cbp Sukses | PT Multitrend vs. PT UBC Medical | PT Multitrend vs. Hoffmen Cleanindo |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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