Correlation Between Mitrabara Adiperdana and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Mitrabara Adiperdana and Garudafood Putra 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 Mitrabara Adiperdana and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitrabara Adiperdana PT and Garudafood Putra Putri, you can compare the effects of market volatilities on Mitrabara Adiperdana and Garudafood Putra 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 Mitrabara Adiperdana with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabara Adiperdana and Garudafood Putra.
Diversification Opportunities for Mitrabara Adiperdana and Garudafood Putra
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mitrabara and Garudafood is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabara Adiperdana PT and Garudafood Putra Putri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garudafood Putra Putri and Mitrabara Adiperdana 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 Mitrabara Adiperdana PT are associated (or correlated) with Garudafood Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garudafood Putra Putri has no effect on the direction of Mitrabara Adiperdana i.e., Mitrabara Adiperdana and Garudafood Putra go up and down completely randomly.
Pair Corralation between Mitrabara Adiperdana and Garudafood Putra
Assuming the 90 days trading horizon Mitrabara Adiperdana PT is expected to under-perform the Garudafood Putra. In addition to that, Mitrabara Adiperdana is 2.37 times more volatile than Garudafood Putra Putri. It trades about -0.16 of its total potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.03 per unit of volatility. If you would invest 40,000 in Garudafood Putra Putri on September 19, 2024 and sell it today you would lose (200.00) from holding Garudafood Putra Putri or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabara Adiperdana PT vs. Garudafood Putra Putri
Performance |
| Timeline |
| Mitrabara Adiperdana |
| Garudafood Putra Putri |
Mitrabara Adiperdana and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabara Adiperdana and Garudafood Putra
The main advantage of trading using opposite Mitrabara Adiperdana and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabara Adiperdana position performs unexpectedly, Garudafood Putra 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 Garudafood Putra will offset losses from the drop in Garudafood Putra's long position.| Mitrabara Adiperdana vs. Harum Energy Tbk | Mitrabara Adiperdana vs. Delta Dunia Makmur | Mitrabara Adiperdana vs. Adi Sarana Armada | Mitrabara Adiperdana vs. Elang Mahkota Teknologi |
| Garudafood Putra vs. Sariguna Primatirta PT | Garudafood Putra vs. Ultra Jaya Milk | Garudafood Putra vs. Nippon Indosari Corpindo | Garudafood Putra vs. Kino Indonesia 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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