Correlation Between Garuda Construction and Apollo Micro

Can any of the company-specific risk be diversified away by investing in both Garuda Construction and Apollo Micro 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 Garuda Construction and Apollo Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Garuda Construction Engineering and Apollo Micro Systems, you can compare the effects of market volatilities on Garuda Construction and Apollo Micro 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 Garuda Construction with a short position of Apollo Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garuda Construction and Apollo Micro.

Diversification Opportunities for Garuda Construction and Apollo Micro

0.65

Correlation Coefficient

Garuda Construction  Apollo Micro

Poor diversification

The 3 months correlation between Garuda and Apollo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Garuda Construction Engineerin and Apollo Micro Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Micro Systems and Garuda Construction 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 Garuda Construction Engineering are associated (or correlated) with Apollo Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Micro Systems has no effect on the direction of Garuda Construction i.e., Garuda Construction and Apollo Micro go up and down completely randomly.

Pair Corralation between Garuda Construction and Apollo Micro

Assuming the 90 days trading horizon Garuda Construction Engineering is expected to generate 1.0 times more return on investment than Apollo Micro. However, Garuda Construction Engineering is 1.0 times less risky than Apollo Micro. It trades about 0.16 of its potential returns per unit of risk. Apollo Micro Systems is currently generating about 0.16 per unit of risk. If you would invest  11,432  in Garuda Construction Engineering on April 20, 2025 and sell it today you would earn a total of  5,436  from holding Garuda Construction Engineering or generate 47.55% return on investment over 90 days.

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

Garuda Construction Engineerin  vs.  Apollo Micro Systems

Garuda Construction

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Garuda Construction Engineering are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Garuda Construction sustained solid returns over the last few months and may actually be approaching a breakup point.

Apollo Micro Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Micro Systems are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Apollo Micro sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Garuda Construction and Apollo Micro

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

The idea behind Garuda Construction Engineering and Apollo Micro Systems 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.