Correlation Between Putra Mandiri and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri 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 Putra Mandiri and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Mandiri Jembar and Garudafood Putra Putri, you can compare the effects of market volatilities on Putra Mandiri 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 Putra Mandiri with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Garudafood Putra.
Diversification Opportunities for Putra Mandiri and Garudafood Putra
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Putra and Garudafood is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar 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 Putra Mandiri 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 Putra Mandiri Jembar 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 Putra Mandiri i.e., Putra Mandiri and Garudafood Putra go up and down completely randomly.
Pair Corralation between Putra Mandiri and Garudafood Putra
Assuming the 90 days trading horizon Putra Mandiri Jembar is expected to generate 4.98 times more return on investment than Garudafood Putra. However, Putra Mandiri is 4.98 times more volatile than Garudafood Putra Putri. It trades about -0.03 of its potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.19 per unit of risk. If you would invest 12,000 in Putra Mandiri Jembar on December 6, 2024 and sell it today you would lose (400.00) from holding Putra Mandiri Jembar or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Mandiri Jembar vs. Garudafood Putra Putri
Performance |
| Timeline |
| Putra Mandiri Jembar |
| Garudafood Putra Putri |
Putra Mandiri and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Mandiri and Garudafood Putra
The main advantage of trading using opposite Putra Mandiri and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri 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.| Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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