Correlation Between HK Metals and Garuda Metalindo
Can any of the company-specific risk be diversified away by investing in both HK Metals and Garuda Metalindo 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 HK Metals and Garuda Metalindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Metals Utama and Garuda Metalindo Tbk, you can compare the effects of market volatilities on HK Metals and Garuda Metalindo 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 HK Metals with a short position of Garuda Metalindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Garuda Metalindo.
Diversification Opportunities for HK Metals and Garuda Metalindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Garuda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Garuda Metalindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garuda Metalindo Tbk and HK Metals 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 HK Metals Utama are associated (or correlated) with Garuda Metalindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garuda Metalindo Tbk has no effect on the direction of HK Metals i.e., HK Metals and Garuda Metalindo go up and down completely randomly.
Pair Corralation between HK Metals and Garuda Metalindo
If you would invest 75,945 in Garuda Metalindo Tbk on August 28, 2024 and sell it today you would earn a total of 39,555 from holding Garuda Metalindo Tbk or generate 52.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HK Metals Utama vs. Garuda Metalindo Tbk
Performance |
| Timeline |
| HK Metals Utama |
| Garuda Metalindo Tbk |
HK Metals and Garuda Metalindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Garuda Metalindo
The main advantage of trading using opposite HK Metals and Garuda Metalindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Garuda Metalindo 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 Garuda Metalindo will offset losses from the drop in Garuda Metalindo's long position.| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
| Garuda Metalindo vs. Indo Kordsa Tbk | Garuda Metalindo vs. Indospring Tbk | Garuda Metalindo vs. Kabelindo Murni Tbk | Garuda Metalindo vs. Blue Bird 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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