Correlation Between Aesler Grup and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Aesler Grup 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 Aesler Grup and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesler Grup Internasional and Garudafood Putra Putri, you can compare the effects of market volatilities on Aesler Grup 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 Aesler Grup with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Garudafood Putra.
Diversification Opportunities for Aesler Grup and Garudafood Putra
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aesler and Garudafood is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional 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 Aesler Grup 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 Aesler Grup Internasional 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 Aesler Grup i.e., Aesler Grup and Garudafood Putra go up and down completely randomly.
Pair Corralation between Aesler Grup and Garudafood Putra
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 4.99 times more return on investment than Garudafood Putra. However, Aesler Grup is 4.99 times more volatile than Garudafood Putra Putri. It trades about 0.75 of its potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.09 per unit of risk. If you would invest 40,000 in Aesler Grup Internasional on September 12, 2024 and sell it today you would earn a total of 60,500 from holding Aesler Grup Internasional or generate 151.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Garudafood Putra Putri
Performance |
| Timeline |
| Aesler Grup Internasional |
| Garudafood Putra Putri |
Aesler Grup and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Garudafood Putra
The main advantage of trading using opposite Aesler Grup and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup 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.| Aesler Grup vs. Siloam International Hospitals | Aesler Grup vs. Hoffmen Cleanindo | Aesler Grup vs. First Media Tbk | Aesler Grup vs. City Retail Developments |
| Garudafood Putra vs. Austindo Nusantara Jaya | Garudafood Putra vs. Provident Agro Tbk | Garudafood Putra vs. Dharma Satya Nusantara | Garudafood Putra vs. Sawit Sumbermas Sarana |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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