Correlation Between Indoritel Makmur and Fks Multi
Can any of the company-specific risk be diversified away by investing in both Indoritel Makmur 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 Indoritel Makmur and Fks Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indoritel Makmur Internasional and Fks Multi Agro, you can compare the effects of market volatilities on Indoritel Makmur 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 Indoritel Makmur with a short position of Fks Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indoritel Makmur and Fks Multi.
Diversification Opportunities for Indoritel Makmur and Fks Multi
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indoritel and Fks is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Indoritel Makmur Internasional 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 Indoritel Makmur 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 Indoritel Makmur Internasional 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 Indoritel Makmur i.e., Indoritel Makmur and Fks Multi go up and down completely randomly.
Pair Corralation between Indoritel Makmur and Fks Multi
If you would invest 915,000 in Indoritel Makmur Internasional on November 27, 2024 and sell it today you would earn a total of 35,000 from holding Indoritel Makmur Internasional or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indoritel Makmur Internasional vs. Fks Multi Agro
Performance |
| Timeline |
| Indoritel Makmur Int |
| Fks Multi Agro |
Indoritel Makmur and Fks Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indoritel Makmur and Fks Multi
The main advantage of trading using opposite Indoritel Makmur and Fks Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indoritel Makmur 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.| Indoritel Makmur vs. Fast Food Indonesia | Indoritel Makmur vs. Centratama Telekomunikasi Ind | Indoritel Makmur vs. Sumber Alfaria Trijaya | Indoritel Makmur vs. Bayu Buana Tbk |
| Fks Multi vs. Enseval Putra Megatrading | Fks Multi vs. Fast Food Indonesia | Fks Multi vs. Gema Grahasarana Tbk | Fks Multi vs. Colorpak Indonesia 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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