Correlation Between Garudafood Putra and Provident Agro
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Provident Agro 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 Provident Agro 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 Provident Agro Tbk, you can compare the effects of market volatilities on Garudafood Putra and Provident Agro 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 Provident Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Provident Agro.
Diversification Opportunities for Garudafood Putra and Provident Agro
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garudafood and Provident is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Provident Agro Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Provident Agro Tbk 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 Provident Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Provident Agro Tbk has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Provident Agro go up and down completely randomly.
Pair Corralation between Garudafood Putra and Provident Agro
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the Provident Agro. In addition to that, Garudafood Putra is 3.27 times more volatile than Provident Agro Tbk. It trades about -0.18 of its total potential returns per unit of risk. Provident Agro Tbk is currently generating about 0.0 per unit of volatility. If you would invest 39,400 in Provident Agro Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Provident Agro Tbk or generate 0.0% 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. Provident Agro Tbk
Performance |
| Timeline |
| Garudafood Putra Putri |
| Provident Agro Tbk |
Garudafood Putra and Provident Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Provident Agro
The main advantage of trading using opposite Garudafood Putra and Provident Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Provident Agro 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 Provident Agro will offset losses from the drop in Provident Agro'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 |
| Provident Agro vs. Bank BRISyariah Tbk | Provident Agro vs. Mitra Pinasthika Mustika | Provident Agro vs. Jakarta Int Hotels | Provident Agro vs. Indosterling Technomedia 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |