Correlation Between Uni Charm and Garudafood Putra
Can any of the company-specific risk be diversified away by investing in both Uni Charm 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 Uni Charm and Garudafood Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uni Charm Indonesia and Garudafood Putra Putri, you can compare the effects of market volatilities on Uni Charm 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 Uni Charm with a short position of Garudafood Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uni Charm and Garudafood Putra.
Diversification Opportunities for Uni Charm and Garudafood Putra
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uni and Garudafood is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Uni Charm Indonesia 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 Uni Charm 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 Uni Charm Indonesia 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 Uni Charm i.e., Uni Charm and Garudafood Putra go up and down completely randomly.
Pair Corralation between Uni Charm and Garudafood Putra
Assuming the 90 days trading horizon Uni Charm Indonesia is expected to under-perform the Garudafood Putra. In addition to that, Uni Charm is 1.19 times more volatile than Garudafood Putra Putri. It trades about -0.03 of its total potential returns per unit of risk. Garudafood Putra Putri is currently generating about -0.03 per unit of volatility. If you would invest 50,714 in Garudafood Putra Putri on August 27, 2024 and sell it today you would lose (11,314) from holding Garudafood Putra Putri or give up 22.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uni Charm Indonesia vs. Garudafood Putra Putri
Performance |
| Timeline |
| Uni Charm Indonesia |
| Garudafood Putra Putri |
Uni Charm and Garudafood Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uni Charm and Garudafood Putra
The main advantage of trading using opposite Uni Charm and Garudafood Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uni Charm 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.| Uni Charm vs. Kino Indonesia Tbk | Uni Charm vs. Garudafood Putra Putri | Uni Charm vs. Mulia Boga Raya | Uni Charm vs. Ultra Jaya Milk |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |