Correlation Between PT Winner and Garuda Metalindo
Can any of the company-specific risk be diversified away by investing in both PT Winner 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 PT Winner and Garuda Metalindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Winner Nusantara and Garuda Metalindo Tbk, you can compare the effects of market volatilities on PT Winner 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 PT Winner with a short position of Garuda Metalindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Winner and Garuda Metalindo.
Diversification Opportunities for PT Winner and Garuda Metalindo
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WINR and Garuda is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Winner Nusantara 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 PT Winner 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 PT Winner Nusantara 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 PT Winner i.e., PT Winner and Garuda Metalindo go up and down completely randomly.
Pair Corralation between PT Winner and Garuda Metalindo
Assuming the 90 days trading horizon PT Winner Nusantara is expected to under-perform the Garuda Metalindo. In addition to that, PT Winner is 2.27 times more volatile than Garuda Metalindo Tbk. It trades about -0.1 of its total potential returns per unit of risk. Garuda Metalindo Tbk is currently generating about 0.32 per unit of volatility. If you would invest 105,500 in Garuda Metalindo Tbk on September 2, 2024 and sell it today you would earn a total of 16,500 from holding Garuda Metalindo Tbk or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Winner Nusantara vs. Garuda Metalindo Tbk
Performance |
| Timeline |
| PT Winner Nusantara |
| Garuda Metalindo Tbk |
PT Winner and Garuda Metalindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Winner and Garuda Metalindo
The main advantage of trading using opposite PT Winner and Garuda Metalindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Winner 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.| PT Winner vs. Visi Media Asia | PT Winner vs. Lion Metal Works | PT Winner vs. Garuda Metalindo Tbk | PT Winner vs. Media Nusantara Citra |
| Garuda Metalindo vs. Matahari Department Store | Garuda Metalindo vs. Multi Medika Internasional | Garuda Metalindo vs. Visi Media Asia | Garuda Metalindo vs. Bayan Resources 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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