Correlation Between Garudafood Putra and PT Indonesia
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Indonesia 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 Indonesia 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 Indonesia Kendaraan, you can compare the effects of market volatilities on Garudafood Putra and PT Indonesia 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 Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Indonesia.
Diversification Opportunities for Garudafood Putra and PT Indonesia
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garudafood and IPCC is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Indonesia Kendaraan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indonesia Kendaraan 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 Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indonesia Kendaraan has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Indonesia go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Indonesia
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the PT Indonesia. In addition to that, Garudafood Putra is 2.41 times more volatile than PT Indonesia Kendaraan. It trades about -0.06 of its total potential returns per unit of risk. PT Indonesia Kendaraan is currently generating about 0.16 per unit of volatility. If you would invest 70,000 in PT Indonesia Kendaraan on August 26, 2024 and sell it today you would earn a total of 3,000 from holding PT Indonesia Kendaraan or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. PT Indonesia Kendaraan
Performance |
| Timeline |
| Garudafood Putra Putri |
| PT Indonesia Kendaraan |
Garudafood Putra and PT Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and PT Indonesia
The main advantage of trading using opposite Garudafood Putra and PT Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Indonesia 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 Indonesia will offset losses from the drop in PT Indonesia's long position.| Garudafood Putra vs. Charoen Pokphand Indonesia | Garudafood Putra vs. Kalbe Farma Tbk | Garudafood Putra vs. Indofood Cbp Sukses | Garudafood Putra vs. Akr Corporindo Tbk |
| PT Indonesia vs. Guna Timur Raya | PT Indonesia vs. Satria Antaran Prima | PT Indonesia vs. Transcoal Pacific Tbk | PT Indonesia vs. Pelayaran Nelly Dwi |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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