Correlation Between FKS Food and Yelooo Integra
Can any of the company-specific risk be diversified away by investing in both FKS Food and Yelooo Integra 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 Yelooo Integra 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 Yelooo Integra Datanet, you can compare the effects of market volatilities on FKS Food and Yelooo Integra 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 Yelooo Integra. Check out your portfolio center. Please also check ongoing floating volatility patterns of FKS Food and Yelooo Integra.
Diversification Opportunities for FKS Food and Yelooo Integra
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FKS and Yelooo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding FKS Food Sejahtera and Yelooo Integra Datanet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yelooo Integra Datanet 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 Yelooo Integra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yelooo Integra Datanet has no effect on the direction of FKS Food i.e., FKS Food and Yelooo Integra go up and down completely randomly.
Pair Corralation between FKS Food and Yelooo Integra
Assuming the 90 days trading horizon FKS Food Sejahtera is expected to under-perform the Yelooo Integra. But the stock apears to be less risky and, when comparing its historical volatility, FKS Food Sejahtera is 3.37 times less risky than Yelooo Integra. The stock trades about -0.05 of its potential returns per unit of risk. The Yelooo Integra Datanet is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Yelooo Integra Datanet on November 28, 2024 and sell it today you would earn a total of 1,600 from holding Yelooo Integra Datanet or generate 160.0% 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. Yelooo Integra Datanet
Performance |
| Timeline |
| FKS Food Sejahtera |
| Yelooo Integra Datanet |
FKS Food and Yelooo Integra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FKS Food and Yelooo Integra
The main advantage of trading using opposite FKS Food and Yelooo Integra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FKS Food position performs unexpectedly, Yelooo Integra 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 Yelooo Integra will offset losses from the drop in Yelooo Integra'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 |
| Yelooo Integra vs. Cisarua Mountain Dairy | Yelooo Integra vs. Prima Alloy Steel | Yelooo Integra vs. Krakatau Steel Persero | Yelooo Integra vs. Gunawan Dianjaya Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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