Correlation Between Garudafood Putra and PT Sreeya
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and PT Sreeya 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 PT Sreeya 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 PT Sreeya Sewu, you can compare the effects of market volatilities on Garudafood Putra and PT Sreeya 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 PT Sreeya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and PT Sreeya.
Diversification Opportunities for Garudafood Putra and PT Sreeya
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Garudafood and SIPD is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and PT Sreeya Sewu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sreeya Sewu 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 PT Sreeya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sreeya Sewu has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and PT Sreeya go up and down completely randomly.
Pair Corralation between Garudafood Putra and PT Sreeya
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 0.74 times more return on investment than PT Sreeya. However, Garudafood Putra Putri is 1.36 times less risky than PT Sreeya. It trades about 0.07 of its potential returns per unit of risk. PT Sreeya Sewu is currently generating about -0.07 per unit of risk. If you would invest 37,400 in Garudafood Putra Putri on September 12, 2024 and sell it today you would earn a total of 2,800 from holding Garudafood Putra Putri or generate 7.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
Garudafood Putra Putri vs. PT Sreeya Sewu
Performance |
Timeline |
Garudafood Putra Putri |
PT Sreeya Sewu |
Garudafood Putra and PT Sreeya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Garudafood Putra and PT Sreeya
The main advantage of trading using opposite Garudafood Putra and PT Sreeya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, PT Sreeya 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 PT Sreeya will offset losses from the drop in PT Sreeya's long position.Garudafood Putra vs. Austindo Nusantara Jaya | Garudafood Putra vs. Provident Agro Tbk | Garudafood Putra vs. Dharma Satya Nusantara | Garudafood Putra vs. Sawit Sumbermas Sarana |
PT Sreeya vs. Austindo Nusantara Jaya | PT Sreeya vs. Garudafood Putra Putri | PT Sreeya vs. Provident Agro Tbk | PT Sreeya vs. Dharma Satya Nusantara |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |