Correlation Between Mitrabahtera Segara and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Mitrabahtera Segara 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 Mitrabahtera Segara and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitrabahtera Segara Sejati and Garudafood Putra Putri, you can compare the effects of market volatilities on Mitrabahtera Segara 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 Mitrabahtera Segara with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitrabahtera Segara and Garudafood Putra.
Diversification Opportunities for Mitrabahtera Segara and Garudafood Putra
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mitrabahtera and Garudafood is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mitrabahtera Segara Sejati 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 Mitrabahtera Segara 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 Mitrabahtera Segara Sejati 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 Mitrabahtera Segara i.e., Mitrabahtera Segara and Garudafood Putra go up and down completely randomly.
Pair Corralation between Mitrabahtera Segara and Garudafood Putra
Assuming the 90 days trading horizon Mitrabahtera Segara Sejati is expected to generate 1.94 times more return on investment than Garudafood Putra. However, Mitrabahtera Segara is 1.94 times more volatile than Garudafood Putra Putri. It trades about 0.01 of its potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.03 per unit of risk. If you would invest 99,000 in Mitrabahtera Segara Sejati on December 6, 2024 and sell it today you would earn a total of 2,500 from holding Mitrabahtera Segara Sejati or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitrabahtera Segara Sejati vs. Garudafood Putra Putri
Performance |
| Timeline |
| Mitrabahtera Segara |
| Garudafood Putra Putri |
Mitrabahtera Segara and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitrabahtera Segara and Garudafood Putra
The main advantage of trading using opposite Mitrabahtera Segara and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitrabahtera Segara 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.| Mitrabahtera Segara vs. Petrosea Tbk | Mitrabahtera Segara vs. Samudera Indonesia Tbk | Mitrabahtera Segara vs. Soechi Lines Tbk | Mitrabahtera Segara vs. Wintermar Offshore Marine |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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