Correlation Between Citra Putra and Fks Multi
Can any of the company-specific risk be diversified away by investing in both Citra Putra and Fks Multi 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 Multi 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 Multi Agro, you can compare the effects of market volatilities on Citra Putra and Fks Multi 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 Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Putra and Fks Multi.
Diversification Opportunities for Citra Putra and Fks Multi
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citra and Fks is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citra Putra Realty and Fks Multi Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fks Multi Agro 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 Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fks Multi Agro has no effect on the direction of Citra Putra i.e., Citra Putra and Fks Multi go up and down completely randomly.
Pair Corralation between Citra Putra and Fks Multi
Assuming the 90 days trading horizon Citra Putra Realty is expected to generate 36.2 times more return on investment than Fks Multi. However, Citra Putra is 36.2 times more volatile than Fks Multi Agro. It trades about 0.9 of its potential returns per unit of risk. Fks Multi Agro is currently generating about -0.24 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 Multi Agro
Performance |
| Timeline |
| Citra Putra Realty |
| Fks Multi Agro |
Citra Putra and Fks Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Putra and Fks Multi
The main advantage of trading using opposite Citra Putra and Fks Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Putra position performs unexpectedly, Fks Multi 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 Multi will offset losses from the drop in Fks Multi'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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