Correlation Between Garudafood Putra and Fast Food
Can any of the company-specific risk be diversified away by investing in both Garudafood Putra and Fast Food 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 Fast Food 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 Fast Food Indonesia, you can compare the effects of market volatilities on Garudafood Putra and Fast Food 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 Fast Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garudafood Putra and Fast Food.
Diversification Opportunities for Garudafood Putra and Fast Food
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Garudafood and Fast is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Garudafood Putra Putri and Fast Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Food Indonesia 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 Fast Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Food Indonesia has no effect on the direction of Garudafood Putra i.e., Garudafood Putra and Fast Food go up and down completely randomly.
Pair Corralation between Garudafood Putra and Fast Food
Assuming the 90 days trading horizon Garudafood Putra Putri is expected to generate 0.16 times more return on investment than Fast Food. However, Garudafood Putra Putri is 6.12 times less risky than Fast Food. It trades about -0.08 of its potential returns per unit of risk. Fast Food Indonesia is currently generating about -0.06 per unit of risk. If you would invest 41,491 in Garudafood Putra Putri on February 27, 2024 and sell it today you would lose (1,291) from holding Garudafood Putra Putri or give up 3.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Garudafood Putra Putri vs. Fast Food Indonesia
Performance |
Timeline |
Garudafood Putra Putri |
Fast Food Indonesia |
Garudafood Putra and Fast Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Garudafood Putra and Fast Food
The main advantage of trading using opposite Garudafood Putra and Fast Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garudafood Putra position performs unexpectedly, Fast Food 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 Fast Food will offset losses from the drop in Fast Food's long position.Garudafood Putra vs. Provident Agro Tbk | Garudafood Putra vs. Sawit Sumbermas Sarana | Garudafood Putra vs. Mitra Pinasthika Mustika | Garudafood Putra vs. Jakarta Int Hotels |
Fast Food vs. Perdana Bangun Pusaka | Fast Food vs. Gema Grahasarana Tbk | Fast Food vs. Mitra Pinasthika Mustika | Fast Food vs. Jakarta Int Hotels |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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