Correlation Between Garudafood Putra and Weha Transportasi
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Weha Transportasi 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 Weha Transportasi 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 Weha Transportasi Indonesia, you can compare the effects of market volatilities on Garudafood Putra and Weha Transportasi 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 Weha Transportasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Weha Transportasi.
Diversification Opportunities for Garudafood Putra and Weha Transportasi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Garudafood and Weha is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Weha Transportasi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weha Transportasi 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 Weha Transportasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weha Transportasi has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Weha Transportasi go up and down completely randomly.
Pair Corralation between Garudafood Putra and Weha Transportasi
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 0.5 times more return on investment than Weha Transportasi. However, Garudafood Putra Putri is 2.01 times less risky than Weha Transportasi. It trades about -0.01 of its potential returns per unit of risk. Weha Transportasi Indonesia is currently generating about -0.03 per unit of risk. If you would invest 42,079 in Garudafood Putra Putri on September 3, 2024 and sell it today you would lose (2,079) from holding Garudafood Putra Putri or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Garudafood Putra Putri vs. Weha Transportasi Indonesia
Performance |
| Timeline |
| Garudafood Putra Putri |
| Weha Transportasi |
Garudafood Putra and Weha Transportasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garudafood Putra and Weha Transportasi
The main advantage of trading using opposite Garudafood Putra and Weha Transportasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Weha Transportasi 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 Weha Transportasi will offset losses from the drop in Weha Transportasi's long position.| Garudafood Putra vs. Astra International Tbk | Garudafood Putra vs. Unilever Indonesia Tbk | Garudafood Putra vs. Telkom Indonesia Tbk | Garudafood Putra vs. Bank Mandiri Persero |
| Weha Transportasi vs. Intanwijaya Internasional Tbk | Weha Transportasi vs. Champion Pacific Indonesia | Weha Transportasi vs. Mitra Pinasthika Mustika | Weha Transportasi vs. Jakarta Int Hotels |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |