Correlation Between Citra Putra and FKS Food
Can any of the company-specific risk be diversified away by investing in both Citra Putra 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 Citra Putra and FKS Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Putra Realty and FKS Food Sejahtera, you can compare the effects of market volatilities on Citra Putra 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 Citra Putra with a short position of FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Putra and FKS Food.
Diversification Opportunities for Citra Putra and FKS Food
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citra and FKS is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Citra Putra Realty 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 Citra Putra 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 Citra Putra Realty 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 Citra Putra i.e., Citra Putra and FKS Food go up and down completely randomly.
Pair Corralation between Citra Putra and FKS Food
Assuming the 90 days trading horizon Citra Putra Realty is expected to generate 4.59 times more return on investment than FKS Food. However, Citra Putra is 4.59 times more volatile than FKS Food Sejahtera. It trades about 0.9 of its potential returns per unit of risk. FKS Food Sejahtera is currently generating about -0.39 per unit of risk. If you would invest 11,100 in Citra Putra Realty on August 29, 2024 and sell it today you would earn a total of 15,500 from holding Citra Putra Realty or generate 139.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citra Putra Realty vs. FKS Food Sejahtera
Performance |
| Timeline |
| Citra Putra Realty |
| FKS Food Sejahtera |
Citra Putra and FKS Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Putra and FKS Food
The main advantage of trading using opposite Citra Putra and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Putra 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.| Citra Putra vs. Jasa Armada Indonesia | Citra Putra vs. Cahayaputra Asa Keramik | Citra Putra vs. Campina Ice Cream |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |