Correlation Between Garudafood Putra and PT Mulia
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Mulia 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 Mulia 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 Mulia Industrindo, you can compare the effects of market volatilities on Garudafood Putra and PT Mulia 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 Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Mulia.
Diversification Opportunities for Garudafood Putra and PT Mulia
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Garudafood and MLIA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Mulia Industrindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mulia Industrindo 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 Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mulia Industrindo has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Mulia go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Mulia
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 2.09 times more return on investment than PT Mulia. However, Garudafood Putra is 2.09 times more volatile than PT Mulia Industrindo. It trades about 0.08 of its potential returns per unit of risk. PT Mulia Industrindo is currently generating about -0.23 per unit of risk. If you would invest 36,600 in Garudafood Putra Putri on September 2, 2024 and sell it today you would earn a total of 3,400 from holding Garudafood Putra Putri or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. PT Mulia Industrindo
Performance |
| Timeline |
| Garudafood Putra Putri |
| PT Mulia Industrindo |
Garudafood Putra and PT Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and PT Mulia
The main advantage of trading using opposite Garudafood Putra and PT Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Mulia 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 Mulia will offset losses from the drop in PT Mulia's long position.| Garudafood Putra vs. Bank BRISyariah Tbk | Garudafood Putra vs. Mitra Pinasthika Mustika | Garudafood Putra vs. Jakarta Int Hotels | Garudafood Putra vs. Indosterling Technomedia Tbk |
| PT Mulia vs. Suparma Tbk | PT Mulia vs. Pelangi Indah Canindo | PT Mulia vs. Surya Toto Indonesia | PT Mulia vs. Lautan Luas 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |