Correlation Between Garudafood Putra and Mitrabahtera Segara
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Mitrabahtera Segara 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 Mitrabahtera Segara 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 Mitrabahtera Segara Sejati, you can compare the effects of market volatilities on Garudafood Putra and Mitrabahtera Segara 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 Mitrabahtera Segara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Mitrabahtera Segara.
Diversification Opportunities for Garudafood Putra and Mitrabahtera Segara
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Garudafood and Mitrabahtera is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Mitrabahtera Segara Sejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitrabahtera Segara 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 Mitrabahtera Segara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitrabahtera Segara has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Mitrabahtera Segara go up and down completely randomly.
Pair Corralation between Garudafood Putra and Mitrabahtera Segara
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the Mitrabahtera Segara. But the stock apears to be less risky and, when comparing its historical volatility, Garudafood Putra Putri is 2.17 times less risky than Mitrabahtera Segara. The stock trades about -0.03 of its potential returns per unit of risk. The Mitrabahtera Segara Sejati is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 106,500 in Mitrabahtera Segara Sejati on September 19, 2024 and sell it today you would lose (500.00) from holding Mitrabahtera Segara Sejati or give up 0.47% 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. Mitrabahtera Segara Sejati
Performance |
| Timeline |
| Garudafood Putra Putri |
| Mitrabahtera Segara |
Garudafood Putra and Mitrabahtera Segara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Mitrabahtera Segara
The main advantage of trading using opposite Garudafood Putra and Mitrabahtera Segara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Mitrabahtera Segara 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 Mitrabahtera Segara will offset losses from the drop in Mitrabahtera Segara'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 |
| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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