Correlation Between Garudafood Putra and PT Surya
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Surya 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 Surya 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 Surya Pertiwi, you can compare the effects of market volatilities on Garudafood Putra and PT Surya 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 Surya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Surya.
Diversification Opportunities for Garudafood Putra and PT Surya
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Garudafood and SPTO is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Surya Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Surya Pertiwi 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 Surya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Surya Pertiwi has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Surya go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Surya
Assuming the 90 days trading horizon Garudafood Putra is expected to generate 1.48 times less return on investment than PT Surya. In addition to that, Garudafood Putra is 1.56 times more volatile than PT Surya Pertiwi. It trades about 0.08 of its total potential returns per unit of risk. PT Surya Pertiwi is currently generating about 0.18 per unit of volatility. If you would invest 55,398 in PT Surya Pertiwi on September 2, 2024 and sell it today you would earn a total of 8,602 from holding PT Surya Pertiwi or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. PT Surya Pertiwi
Performance |
| Timeline |
| Garudafood Putra Putri |
| PT Surya Pertiwi |
Garudafood Putra and PT Surya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and PT Surya
The main advantage of trading using opposite Garudafood Putra and PT Surya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Surya 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 Surya will offset losses from the drop in PT Surya'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 Surya vs. Matahari Department Store | PT Surya vs. Multi Medika Internasional | PT Surya vs. Visi Media Asia | PT Surya 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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