Correlation Between Jaya Swarasa and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Jaya Swarasa 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 Jaya Swarasa and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Swarasa Agung and Garudafood Putra Putri, you can compare the effects of market volatilities on Jaya Swarasa 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 Jaya Swarasa with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Swarasa and Garudafood Putra.
Diversification Opportunities for Jaya Swarasa and Garudafood Putra
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jaya and Garudafood is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Swarasa Agung 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 Jaya Swarasa 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 Jaya Swarasa Agung 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 Jaya Swarasa i.e., Jaya Swarasa and Garudafood Putra go up and down completely randomly.
Pair Corralation between Jaya Swarasa and Garudafood Putra
Assuming the 90 days trading horizon Jaya Swarasa Agung is expected to under-perform the Garudafood Putra. In addition to that, Jaya Swarasa is 2.78 times more volatile than Garudafood Putra Putri. It trades about -0.04 of its total potential returns per unit of risk. Garudafood Putra Putri is currently generating about 0.0 per unit of volatility. If you would invest 40,513 in Garudafood Putra Putri on September 12, 2024 and sell it today you would lose (313.00) from holding Garudafood Putra Putri or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Swarasa Agung vs. Garudafood Putra Putri
Performance |
| Timeline |
| Jaya Swarasa Agung |
| Garudafood Putra Putri |
Jaya Swarasa and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Swarasa and Garudafood Putra
The main advantage of trading using opposite Jaya Swarasa and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Swarasa 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.| Jaya Swarasa vs. Wahana Inti MakmurTbk | Jaya Swarasa vs. Formosa Ingredient Factory | Jaya Swarasa vs. Triputra Agro Persada | Jaya Swarasa vs. Cisarua Mountain Dairy |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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