Correlation Between Garudafood Putra and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Jaya Swarasa 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 Swarasa 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 Swarasa Agung, you can compare the effects of market volatilities on Garudafood Putra and Jaya Swarasa 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 Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Jaya Swarasa.
Diversification Opportunities for Garudafood Putra and Jaya Swarasa
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Garudafood and Jaya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung 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 Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Jaya Swarasa go up and down completely randomly.
Pair Corralation between Garudafood Putra and Jaya Swarasa
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 1.52 times more return on investment than Jaya Swarasa. However, Garudafood Putra is 1.52 times more volatile than Jaya Swarasa Agung. It trades about -0.18 of its potential returns per unit of risk. Jaya Swarasa Agung is currently generating about -0.41 per unit of risk. If you would invest 44,200 in Garudafood Putra Putri on September 2, 2024 and sell it today you would lose (4,200) from holding Garudafood Putra Putri or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Jaya Swarasa Agung
Performance |
| Timeline |
| Garudafood Putra Putri |
| Jaya Swarasa Agung |
Garudafood Putra and Jaya Swarasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Jaya Swarasa
The main advantage of trading using opposite Garudafood Putra and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Jaya Swarasa 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 Swarasa will offset losses from the drop in Jaya Swarasa'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 |
| Jaya Swarasa vs. Wahana Inti MakmurTbk | Jaya Swarasa vs. Formosa Ingredient Factory | Jaya Swarasa vs. Triputra Agro Persada | Jaya Swarasa vs. Cisarua Mountain Dairy |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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