Correlation Between Perusahaan Perseroan and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both Perusahaan Perseroan and GWILLI FOOD 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 Perusahaan Perseroan and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Perseroan PT and GWILLI FOOD, you can compare the effects of market volatilities on Perusahaan Perseroan and GWILLI FOOD 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 Perusahaan Perseroan with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Perseroan and GWILLI FOOD.
Diversification Opportunities for Perusahaan Perseroan and GWILLI FOOD
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perusahaan and GWILLI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and Perusahaan Perseroan 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 Perusahaan Perseroan PT are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of Perusahaan Perseroan i.e., Perusahaan Perseroan and GWILLI FOOD go up and down completely randomly.
Pair Corralation between Perusahaan Perseroan and GWILLI FOOD
Assuming the 90 days horizon Perusahaan Perseroan PT is expected to under-perform the GWILLI FOOD. In addition to that, Perusahaan Perseroan is 1.17 times more volatile than GWILLI FOOD. It trades about -0.06 of its total potential returns per unit of risk. GWILLI FOOD is currently generating about 0.23 per unit of volatility. If you would invest 1,450 in GWILLI FOOD on October 10, 2024 and sell it today you would earn a total of 120.00 from holding GWILLI FOOD or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perusahaan Perseroan PT vs. GWILLI FOOD
Performance |
| Timeline |
| Perusahaan Perseroan |
| GWILLI FOOD |
Perusahaan Perseroan and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Perseroan and GWILLI FOOD
The main advantage of trading using opposite Perusahaan Perseroan and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| Perusahaan Perseroan vs. FARM 51 GROUP | Perusahaan Perseroan vs. Luckin Coffee | Perusahaan Perseroan vs. Hanison Construction Holdings | Perusahaan Perseroan vs. Titan Machinery |
| GWILLI FOOD vs. Tower Semiconductor | GWILLI FOOD vs. ON SEMICONDUCTOR | GWILLI FOOD vs. MTY Food Group | GWILLI FOOD vs. Taiwan Semiconductor Manufacturing |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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