Correlation Between Bank Ocbc and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Bank Ocbc 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 Bank Ocbc and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Ocbc Nisp and Garudafood Putra Putri, you can compare the effects of market volatilities on Bank Ocbc 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 Bank Ocbc with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Ocbc and Garudafood Putra.
Diversification Opportunities for Bank Ocbc and Garudafood Putra
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Garudafood is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank Ocbc Nisp 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 Bank Ocbc 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 Bank Ocbc Nisp 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 Bank Ocbc i.e., Bank Ocbc and Garudafood Putra go up and down completely randomly.
Pair Corralation between Bank Ocbc and Garudafood Putra
Assuming the 90 days trading horizon Bank Ocbc Nisp is expected to generate 0.25 times more return on investment than Garudafood Putra. However, Bank Ocbc Nisp is 4.01 times less risky than Garudafood Putra. It trades about 0.07 of its potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.08 per unit of risk. If you would invest 133,500 in Bank Ocbc Nisp on August 30, 2024 and sell it today you would earn a total of 1,500 from holding Bank Ocbc Nisp or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Ocbc Nisp vs. Garudafood Putra Putri
Performance |
| Timeline |
| Bank Ocbc Nisp |
| Garudafood Putra Putri |
Bank Ocbc and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Ocbc and Garudafood Putra
The main advantage of trading using opposite Bank Ocbc and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Ocbc 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.| Bank Ocbc vs. Bank Mega Tbk | Bank Ocbc vs. Bank Pan Indonesia | Bank Ocbc vs. Bank Permata Tbk | Bank Ocbc vs. Bank Cimb Niaga |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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