Correlation Between Garudafood Putra and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Garudafood Putra and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Citatah Tbk.
Diversification Opportunities for Garudafood Putra and Citatah Tbk
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garudafood and Citatah is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah Tbk 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Citatah Tbk go up and down completely randomly.
Pair Corralation between Garudafood Putra and Citatah Tbk
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the Citatah Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Garudafood Putra Putri is 2.42 times less risky than Citatah Tbk. The stock trades about -0.03 of its potential returns per unit of risk. The Citatah Tbk is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,400 in Citatah Tbk on September 19, 2024 and sell it today you would earn a total of 200.00 from holding Citatah Tbk or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Citatah Tbk
Performance |
| Timeline |
| Garudafood Putra Putri |
| Citatah Tbk |
Garudafood Putra and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Citatah Tbk
The main advantage of trading using opposite Garudafood Putra and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk'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 |
| Citatah Tbk vs. Kedaung Indah Can | Citatah Tbk vs. Kabelindo Murni Tbk | Citatah Tbk vs. Champion Pacific Indonesia | Citatah Tbk vs. Bhuwanatala Indah Permai |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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