Correlation Between Garda Tujuh and Bayan Resources

Can any of the company-specific risk be diversified away by investing in both Garda Tujuh and Bayan Resources 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 Garda Tujuh and Bayan Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Garda Tujuh Buana and Bayan Resources Tbk, you can compare the effects of market volatilities on Garda Tujuh and Bayan Resources 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 Garda Tujuh with a short position of Bayan Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garda Tujuh and Bayan Resources.

Diversification Opportunities for Garda Tujuh and Bayan Resources

0.0

Correlation Coefficient

Garda Tujuh  Bayan Resources

Pay attention - limited upside

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

Pair Corralation between Garda Tujuh and Bayan Resources

If you would invest  1,965,000  in Bayan Resources Tbk on March 18, 2024 and sell it today you would earn a total of  0.00  from holding Bayan Resources Tbk or generate 0.0% return on investment over 90 days.

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

Garda Tujuh Buana  vs.  Bayan Resources Tbk

Garda Tujuh Buana

Risk-Adjusted Performance

0 of 100

Very Weak

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

Bayan Resources Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Garda Tujuh and Bayan Resources

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

The idea behind Garda Tujuh Buana and Bayan Resources 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.