Correlation Between GUDANG GARAM and ATOSS SOFTWARE

Can any of the company-specific risk be diversified away by investing in both GUDANG GARAM and ATOSS SOFTWARE 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 GUDANG GARAM and ATOSS SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GUDANG GARAM and ATOSS SOFTWARE, you can compare the effects of market volatilities on GUDANG GARAM and ATOSS SOFTWARE 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 GUDANG GARAM with a short position of ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUDANG GARAM and ATOSS SOFTWARE.

Diversification Opportunities for GUDANG GARAM and ATOSS SOFTWARE

-0.76

Correlation Coefficient

GUDANG GARAM  ATOSS SOFTWARE

Pay attention - limited upside

The 3 months correlation between GUDANG and ATOSS is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding GUDANG GARAM and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE and GUDANG GARAM 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 GUDANG GARAM are associated (or correlated) with ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of GUDANG GARAM i.e., GUDANG GARAM and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between GUDANG GARAM and ATOSS SOFTWARE

Assuming the 90 days trading horizon GUDANG GARAM is expected to under-perform the ATOSS SOFTWARE. In addition to that, GUDANG GARAM is 1.38 times more volatile than ATOSS SOFTWARE. It trades about -0.18 of its total potential returns per unit of risk. ATOSS SOFTWARE is currently generating about 0.09 per unit of volatility. If you would invest  11,400  in ATOSS SOFTWARE on December 30, 2024 and sell it today you would earn a total of  1,200  from holding ATOSS SOFTWARE or generate 10.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

GUDANG GARAM  vs.  ATOSS SOFTWARE

GUDANG GARAM

Risk-Adjusted Performance

Very Weak

Over the last 90 days GUDANG GARAM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ATOSS SOFTWARE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATOSS SOFTWARE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ATOSS SOFTWARE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GUDANG GARAM and ATOSS SOFTWARE

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

The idea behind GUDANG GARAM and ATOSS SOFTWARE 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.