Correlation Between FKS Food and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both FKS Food and Astra Graphia 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 FKS Food and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FKS Food Sejahtera and Astra Graphia Tbk, you can compare the effects of market volatilities on FKS Food and Astra Graphia 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 FKS Food with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of FKS Food and Astra Graphia.
Diversification Opportunities for FKS Food and Astra Graphia
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between FKS and Astra is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding FKS Food Sejahtera and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and FKS Food 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 FKS Food Sejahtera are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of FKS Food i.e., FKS Food and Astra Graphia go up and down completely randomly.
Pair Corralation between FKS Food and Astra Graphia
Assuming the 90 days trading horizon FKS Food Sejahtera is expected to under-perform the Astra Graphia. But the stock apears to be less risky and, when comparing its historical volatility, FKS Food Sejahtera is 1.11 times less risky than Astra Graphia. The stock trades about -0.38 of its potential returns per unit of risk. The Astra Graphia Tbk is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 90,000 in Astra Graphia Tbk on August 29, 2024 and sell it today you would lose (5,000) from holding Astra Graphia Tbk or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FKS Food Sejahtera vs. Astra Graphia Tbk
Performance |
| Timeline |
| FKS Food Sejahtera |
| Astra Graphia Tbk |
FKS Food and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FKS Food and Astra Graphia
The main advantage of trading using opposite FKS Food and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FKS Food position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia's long position.| FKS Food vs. Alam Sutera Realty | FKS Food vs. Sentul City Tbk | FKS Food vs. Gajah Tunggal Tbk | FKS Food vs. Akr Corporindo Tbk |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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