Correlation Between Garudafood Putra and Intraco Penta

Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Intraco Penta 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 Garudafood Putra and Intraco Penta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Garudafood Putra Putri and Intraco Penta Tbk, you can compare the effects of market volatilities on Garudafood Putra and Intraco Penta 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 Garudafood Putra with a short position of Intraco Penta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Intraco Penta.

Diversification Opportunities for Garudafood Putra and Intraco Penta

0.0

Correlation Coefficient

Garudafood Putra  Intraco Penta

Pay attention - limited upside

The 3 months correlation between Garudafood and Intraco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Intraco Penta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intraco Penta Tbk and Garudafood Putra 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 Garudafood Putra Putri are associated (or correlated) with Intraco Penta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intraco Penta Tbk has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Intraco Penta go up and down completely randomly.

Pair Corralation between Garudafood Putra and Intraco Penta

If you would invest  38,800  in Garudafood Putra Putri on September 24, 2024 and sell it today you would earn a total of  400.00  from holding Garudafood Putra Putri or generate 1.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Garudafood Putra Putri  vs.  Intraco Penta Tbk

Garudafood Putra Putri

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Garudafood Putra Putri are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Garudafood Putra is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Intraco Penta Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intraco Penta Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Intraco Penta is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Garudafood Putra and Intraco Penta

The main advantage of trading using opposite Garudafood Putra and Intraco Penta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Intraco Penta 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 Intraco Penta will offset losses from the drop in Intraco Penta's long position.

The idea behind Garudafood Putra Putri and Intraco Penta Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.