Correlation Between Ever Shine and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Ever Shine and Japfa Comfeed 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 Ever Shine and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ever Shine Textile and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Ever Shine and Japfa Comfeed 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 Ever Shine with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ever Shine and Japfa Comfeed.
Diversification Opportunities for Ever Shine and Japfa Comfeed
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ever and Japfa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ever Shine Textile and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and Ever Shine 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 Ever Shine Textile are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Ever Shine i.e., Ever Shine and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Ever Shine and Japfa Comfeed
Assuming the 90 days trading horizon Ever Shine Textile is expected to under-perform the Japfa Comfeed. In addition to that, Ever Shine is 1.89 times more volatile than Japfa Comfeed Indonesia. It trades about -0.12 of its total potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about -0.13 per unit of volatility. If you would invest 179,500 in Japfa Comfeed Indonesia on September 3, 2024 and sell it today you would lose (8,000) from holding Japfa Comfeed Indonesia or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ever Shine Textile vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Ever Shine Textile |
| Japfa Comfeed Indonesia |
Ever Shine and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ever Shine and Japfa Comfeed
The main advantage of trading using opposite Ever Shine and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ever Shine position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Ever Shine vs. Mitra Pinasthika Mustika | Ever Shine vs. Jakarta Int Hotels | Ever Shine vs. Asuransi Harta Aman | Ever Shine vs. Indosterling Technomedia Tbk |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |