Correlation Between Garudafood Putra and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Pt Pakuan 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 Pakuan 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 Pakuan Tbk, you can compare the effects of market volatilities on Garudafood Putra and Pt Pakuan 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 Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Pt Pakuan.
Diversification Opportunities for Garudafood Putra and Pt Pakuan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Garudafood and UANG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan 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 Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Pt Pakuan go up and down completely randomly.
Pair Corralation between Garudafood Putra and Pt Pakuan
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 0.18 times more return on investment than Pt Pakuan. However, Garudafood Putra Putri is 5.59 times less risky than Pt Pakuan. It trades about -0.19 of its potential returns per unit of risk. Pt Pakuan Tbk is currently generating about -0.12 per unit of risk. If you would invest 39,200 in Garudafood Putra Putri on December 6, 2024 and sell it today you would lose (1,200) from holding Garudafood Putra Putri or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Garudafood Putra Putri |
| Pt Pakuan Tbk |
Garudafood Putra and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Pt Pakuan
The main advantage of trading using opposite Garudafood Putra and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Pt Pakuan 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 Pakuan will offset losses from the drop in Pt Pakuan's long position.| Garudafood Putra vs. Sariguna Primatirta PT | Garudafood Putra vs. Ultra Jaya Milk | Garudafood Putra vs. Nippon Indosari Corpindo | Garudafood Putra vs. Kino Indonesia Tbk |
| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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