Correlation Between Rimo International and Garuda Metalindo
Can any of the company-specific risk be diversified away by investing in both Rimo International and Garuda Metalindo 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 Rimo International and Garuda Metalindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimo International Lestari and Garuda Metalindo Tbk, you can compare the effects of market volatilities on Rimo International and Garuda Metalindo 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 Rimo International with a short position of Garuda Metalindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimo International and Garuda Metalindo.
Diversification Opportunities for Rimo International and Garuda Metalindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rimo and Garuda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rimo International Lestari and Garuda Metalindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garuda Metalindo Tbk and Rimo International 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 Rimo International Lestari are associated (or correlated) with Garuda Metalindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garuda Metalindo Tbk has no effect on the direction of Rimo International i.e., Rimo International and Garuda Metalindo go up and down completely randomly.
Pair Corralation between Rimo International and Garuda Metalindo
If you would invest 109,000 in Garuda Metalindo Tbk on September 12, 2024 and sell it today you would earn a total of 21,000 from holding Garuda Metalindo Tbk or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rimo International Lestari vs. Garuda Metalindo Tbk
Performance |
| Timeline |
| Rimo International |
| Garuda Metalindo Tbk |
Rimo International and Garuda Metalindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimo International and Garuda Metalindo
The main advantage of trading using opposite Rimo International and Garuda Metalindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimo International position performs unexpectedly, Garuda Metalindo 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 Garuda Metalindo will offset losses from the drop in Garuda Metalindo's long position.| Rimo International vs. Smartfren Telecom Tbk | Rimo International vs. Steel Pipe Industry | Rimo International vs. Garuda Metalindo Tbk | Rimo International vs. Merdeka Copper Gold |
| Garuda Metalindo vs. PT Indonesia Kendaraan | Garuda Metalindo vs. Surya Toto Indonesia | Garuda Metalindo vs. Mitra Pinasthika Mustika | Garuda Metalindo vs. Integra Indocabinet 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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