Correlation Between Fukuoka Financial and PT Ace
Can any of the company-specific risk be diversified away by investing in both Fukuoka Financial and PT Ace 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 Fukuoka Financial and PT Ace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fukuoka Financial Group and PT Ace Hardware, you can compare the effects of market volatilities on Fukuoka Financial and PT Ace 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 Fukuoka Financial with a short position of PT Ace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fukuoka Financial and PT Ace.
Diversification Opportunities for Fukuoka Financial and PT Ace
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fukuoka and 4AH1 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fukuoka Financial Group and PT Ace Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Ace Hardware and Fukuoka Financial 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 Fukuoka Financial Group are associated (or correlated) with PT Ace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Ace Hardware has no effect on the direction of Fukuoka Financial i.e., Fukuoka Financial and PT Ace go up and down completely randomly.
Pair Corralation between Fukuoka Financial and PT Ace
Assuming the 90 days horizon Fukuoka Financial is expected to generate 2.63 times less return on investment than PT Ace. But when comparing it to its historical volatility, Fukuoka Financial Group is 11.81 times less risky than PT Ace. It trades about 0.12 of its potential returns per unit of risk. PT Ace Hardware is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4.05 in PT Ace Hardware on October 20, 2024 and sell it today you would lose (0.35) from holding PT Ace Hardware or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fukuoka Financial Group vs. PT Ace Hardware
Performance |
| Timeline |
| Fukuoka Financial |
| PT Ace Hardware |
Fukuoka Financial and PT Ace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fukuoka Financial and PT Ace
The main advantage of trading using opposite Fukuoka Financial and PT Ace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fukuoka Financial position performs unexpectedly, PT Ace 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 Ace will offset losses from the drop in PT Ace's long position.| Fukuoka Financial vs. Townsquare Media | Fukuoka Financial vs. Calibre Mining Corp | Fukuoka Financial vs. GigaMedia | Fukuoka Financial vs. TOWNSQUARE MEDIA INC |
| PT Ace vs. Fortune Brands Home | PT Ace vs. Whirlpool | PT Ace vs. Tempur Sealy International | PT Ace vs. Howden Joinery Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |