Correlation Between Garudafood Putra and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Jaya Sukses 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 Jaya Sukses 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 Jaya Sukses Makmur, you can compare the effects of market volatilities on Garudafood Putra and Jaya Sukses 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 Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Jaya Sukses.
Diversification Opportunities for Garudafood Putra and Jaya Sukses
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Garudafood and Jaya is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur 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 Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Jaya Sukses go up and down completely randomly.
Pair Corralation between Garudafood Putra and Jaya Sukses
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to under-perform the Jaya Sukses. In addition to that, Garudafood Putra is 3.08 times more volatile than Jaya Sukses Makmur. It trades about -0.02 of its total potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.05 per unit of volatility. If you would invest 93,000 in Jaya Sukses Makmur on September 1, 2024 and sell it today you would earn a total of 7,000 from holding Jaya Sukses Makmur or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Garudafood Putra Putri |
| Jaya Sukses Makmur |
Garudafood Putra and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Jaya Sukses
The main advantage of trading using opposite Garudafood Putra and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' 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 |
| Jaya Sukses vs. Matahari Department Store | Jaya Sukses vs. Multi Medika Internasional | Jaya Sukses vs. Visi Media Asia | Jaya Sukses vs. Bayan Resources 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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