Correlation Between Garudafood Putra and PT Mandiri
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Mandiri 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 Mandiri 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 Mandiri Herindo, you can compare the effects of market volatilities on Garudafood Putra and PT Mandiri 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 Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Mandiri.
Diversification Opportunities for Garudafood Putra and PT Mandiri
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Garudafood and MAHA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Mandiri Herindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mandiri Herindo 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 Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mandiri Herindo has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Mandiri go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Mandiri
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 0.41 times more return on investment than PT Mandiri. However, Garudafood Putra Putri is 2.41 times less risky than PT Mandiri. It trades about -0.3 of its potential returns per unit of risk. PT Mandiri Herindo is currently generating about -0.14 per unit of risk. If you would invest 39,800 in Garudafood Putra Putri on November 28, 2024 and sell it today you would lose (1,400) from holding Garudafood Putra Putri or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. PT Mandiri Herindo
Performance |
| Timeline |
| Garudafood Putra Putri |
| PT Mandiri Herindo |
Garudafood Putra and PT Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and PT Mandiri
The main advantage of trading using opposite Garudafood Putra and PT Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Mandiri 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 Mandiri will offset losses from the drop in PT Mandiri'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 Mandiri vs. Arkadia Digital Media | PT Mandiri vs. Optima Prima Metal | PT Mandiri vs. Dyandra Media International | PT Mandiri vs. Smartfren Telecom 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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