Correlation Between Garudafood Putra and Sido Muncul
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Sido Muncul 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 Sido Muncul 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 Sido Muncul PT, you can compare the effects of market volatilities on Garudafood Putra and Sido Muncul 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 Sido Muncul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Sido Muncul.
Diversification Opportunities for Garudafood Putra and Sido Muncul
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garudafood and Sido is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Sido Muncul PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sido Muncul 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 Sido Muncul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sido Muncul PT has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Sido Muncul go up and down completely randomly.
Pair Corralation between Garudafood Putra and Sido Muncul
Assuming the 90 days trading horizon Garudafood Putra is expected to generate 53.28 times less return on investment than Sido Muncul. But when comparing it to its historical volatility, Garudafood Putra Putri is 1.37 times less risky than Sido Muncul. It trades about 0.0 of its potential returns per unit of risk. Sido Muncul PT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47,738 in Sido Muncul PT on September 14, 2024 and sell it today you would earn a total of 10,762 from holding Sido Muncul PT or generate 22.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.61% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Sido Muncul PT
Performance |
| Timeline |
| Garudafood Putra Putri |
| Sido Muncul PT |
Garudafood Putra and Sido Muncul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Sido Muncul
The main advantage of trading using opposite Garudafood Putra and Sido Muncul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Sido Muncul 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 Sido Muncul will offset losses from the drop in Sido Muncul's long position.| Garudafood Putra vs. Austindo Nusantara Jaya | Garudafood Putra vs. Provident Agro Tbk | Garudafood Putra vs. Dharma Satya Nusantara | Garudafood Putra vs. Sawit Sumbermas Sarana |
| Sido Muncul vs. Austindo Nusantara Jaya | Sido Muncul vs. Garudafood Putra Putri | Sido Muncul vs. Provident Agro Tbk | Sido Muncul vs. Dharma Satya Nusantara |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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