Correlation Between FKS Food and Mayora Indah
Can any of the company-specific risk be diversified away by investing in both FKS Food and Mayora Indah 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 Mayora Indah 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 Mayora Indah Tbk, you can compare the effects of market volatilities on FKS Food and Mayora Indah 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 Mayora Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of FKS Food and Mayora Indah.
Diversification Opportunities for FKS Food and Mayora Indah
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FKS and Mayora is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding FKS Food Sejahtera and Mayora Indah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayora Indah 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 Mayora Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayora Indah Tbk has no effect on the direction of FKS Food i.e., FKS Food and Mayora Indah go up and down completely randomly.
Pair Corralation between FKS Food and Mayora Indah
Assuming the 90 days trading horizon FKS Food Sejahtera is expected to generate 0.77 times more return on investment than Mayora Indah. However, FKS Food Sejahtera is 1.3 times less risky than Mayora Indah. It trades about 0.23 of its potential returns per unit of risk. Mayora Indah Tbk is currently generating about -0.27 per unit of risk. If you would invest 10,600 in FKS Food Sejahtera on October 22, 2024 and sell it today you would earn a total of 800.00 from holding FKS Food Sejahtera or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FKS Food Sejahtera vs. Mayora Indah Tbk
Performance |
| Timeline |
| FKS Food Sejahtera |
| Mayora Indah Tbk |
FKS Food and Mayora Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FKS Food and Mayora Indah
The main advantage of trading using opposite FKS Food and Mayora Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FKS Food position performs unexpectedly, Mayora Indah 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 Mayora Indah will offset losses from the drop in Mayora Indah'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 |
| Mayora Indah vs. Indofood Cbp Sukses | Mayora Indah vs. Kalbe Farma Tbk | Mayora Indah vs. Unilever Indonesia Tbk | Mayora Indah vs. Ultra Jaya Milk |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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