Correlation Between Acset Indonusa and Fimperkasa Utama
Can any of the company-specific risk be diversified away by investing in both Acset Indonusa and Fimperkasa Utama 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 Acset Indonusa and Fimperkasa Utama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acset Indonusa Tbk and Fimperkasa Utama Tbk, you can compare the effects of market volatilities on Acset Indonusa and Fimperkasa Utama 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 Acset Indonusa with a short position of Fimperkasa Utama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acset Indonusa and Fimperkasa Utama.
Diversification Opportunities for Acset Indonusa and Fimperkasa Utama
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Acset and Fimperkasa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Acset Indonusa Tbk and Fimperkasa Utama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fimperkasa Utama Tbk and Acset Indonusa 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 Acset Indonusa Tbk are associated (or correlated) with Fimperkasa Utama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fimperkasa Utama Tbk has no effect on the direction of Acset Indonusa i.e., Acset Indonusa and Fimperkasa Utama go up and down completely randomly.
Pair Corralation between Acset Indonusa and Fimperkasa Utama
Assuming the 90 days trading horizon Acset Indonusa Tbk is expected to under-perform the Fimperkasa Utama. But the stock apears to be less risky and, when comparing its historical volatility, Acset Indonusa Tbk is 1.26 times less risky than Fimperkasa Utama. The stock trades about -0.17 of its potential returns per unit of risk. The Fimperkasa Utama Tbk is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,000 in Fimperkasa Utama Tbk on August 26, 2024 and sell it today you would earn a total of 500.00 from holding Fimperkasa Utama Tbk or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acset Indonusa Tbk vs. Fimperkasa Utama Tbk
Performance |
| Timeline |
| Acset Indonusa Tbk |
| Fimperkasa Utama Tbk |
Acset Indonusa and Fimperkasa Utama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acset Indonusa and Fimperkasa Utama
The main advantage of trading using opposite Acset Indonusa and Fimperkasa Utama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acset Indonusa position performs unexpectedly, Fimperkasa Utama 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 Fimperkasa Utama will offset losses from the drop in Fimperkasa Utama's long position.| Acset Indonusa vs. Bekasi Fajar Industrial | Acset Indonusa vs. Nusa Raya Cipta | Acset Indonusa vs. Wijaya Karya Beton | Acset Indonusa vs. Agung Podomoro Land |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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