Correlation Between Garudafood Putra and NFC Indonesia
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and NFC 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 NFC 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 NFC Indonesia PT, you can compare the effects of market volatilities on Garudafood Putra and NFC 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 NFC Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and NFC Indonesia.
Diversification Opportunities for Garudafood Putra and NFC Indonesia
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garudafood and NFC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and NFC Indonesia PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFC Indonesia PT 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 NFC Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFC Indonesia PT has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and NFC Indonesia go up and down completely randomly.
Pair Corralation between Garudafood Putra and NFC Indonesia
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the NFC Indonesia. But the stock apears to be less risky and, when comparing its historical volatility, Garudafood Putra Putri is 6.88 times less risky than NFC Indonesia. The stock trades about -0.36 of its potential returns per unit of risk. The NFC Indonesia PT is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 127,000 in NFC Indonesia PT on December 1, 2024 and sell it today you would lose (3,500) from holding NFC Indonesia PT or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. NFC Indonesia PT
Performance |
| Timeline |
| Garudafood Putra Putri |
| NFC Indonesia PT |
Garudafood Putra and NFC Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and NFC Indonesia
The main advantage of trading using opposite Garudafood Putra and NFC Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, NFC 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 NFC Indonesia will offset losses from the drop in NFC Indonesia'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 |
| NFC Indonesia vs. M Cash Integrasi | NFC Indonesia vs. Nusantara Voucher Distribution | NFC Indonesia vs. Digital Mediatama Maxima | NFC Indonesia vs. Multipolar Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |