Correlation Between Akasha Wira and FKS Food
Can any of the company-specific risk be diversified away by investing in both Akasha Wira and FKS Food 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 Akasha Wira and FKS Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akasha Wira International and FKS Food Sejahtera, you can compare the effects of market volatilities on Akasha Wira and FKS Food 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 Akasha Wira with a short position of FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akasha Wira and FKS Food.
Diversification Opportunities for Akasha Wira and FKS Food
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Akasha and FKS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Akasha Wira International and FKS Food Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FKS Food Sejahtera and Akasha Wira 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 Akasha Wira International are associated (or correlated) with FKS Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FKS Food Sejahtera has no effect on the direction of Akasha Wira i.e., Akasha Wira and FKS Food go up and down completely randomly.
Pair Corralation between Akasha Wira and FKS Food
Assuming the 90 days trading horizon Akasha Wira International is expected to under-perform the FKS Food. In addition to that, Akasha Wira is 1.59 times more volatile than FKS Food Sejahtera. It trades about -0.45 of its total potential returns per unit of risk. FKS Food Sejahtera is currently generating about -0.48 per unit of volatility. If you would invest 13,100 in FKS Food Sejahtera on September 1, 2024 and sell it today you would lose (1,300) from holding FKS Food Sejahtera or give up 9.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Akasha Wira International vs. FKS Food Sejahtera
Performance |
| Timeline |
| Akasha Wira International |
| FKS Food Sejahtera |
Akasha Wira and FKS Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akasha Wira and FKS Food
The main advantage of trading using opposite Akasha Wira and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akasha Wira position performs unexpectedly, FKS Food 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 FKS Food will offset losses from the drop in FKS Food's long position.| Akasha Wira vs. FKS Food Sejahtera | Akasha Wira vs. Wilmar Cahaya Indonesia | Akasha Wira vs. Polychem Indonesia Tbk | Akasha Wira vs. Astra Graphia Tbk |
| FKS Food vs. Bank BRISyariah Tbk | FKS Food vs. Mitra Pinasthika Mustika | FKS Food vs. Jakarta Int Hotels | FKS Food vs. Indosterling Technomedia Tbk |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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