Correlation Between Fbec Worldwide and PT Astra
Can any of the company-specific risk be diversified away by investing in both Fbec Worldwide and PT Astra 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 Fbec Worldwide and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbec Worldwide and PT Astra International, you can compare the effects of market volatilities on Fbec Worldwide and PT Astra 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 Fbec Worldwide with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbec Worldwide and PT Astra.
Diversification Opportunities for Fbec Worldwide and PT Astra
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fbec and ASII is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fbec Worldwide and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and Fbec Worldwide 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 Fbec Worldwide are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of Fbec Worldwide i.e., Fbec Worldwide and PT Astra go up and down completely randomly.
Pair Corralation between Fbec Worldwide and PT Astra
Given the investment horizon of 90 days Fbec Worldwide is expected to generate 3.89 times more return on investment than PT Astra. However, Fbec Worldwide is 3.89 times more volatile than PT Astra International. It trades about 0.13 of its potential returns per unit of risk. PT Astra International is currently generating about 0.09 per unit of risk. If you would invest 0.01 in Fbec Worldwide on November 2, 2024 and sell it today you would earn a total of 0.04 from holding Fbec Worldwide or generate 400.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Fbec Worldwide vs. PT Astra International
Performance |
| Timeline |
| Fbec Worldwide |
| PT Astra International |
Fbec Worldwide and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbec Worldwide and PT Astra
The main advantage of trading using opposite Fbec Worldwide and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbec Worldwide position performs unexpectedly, PT Astra 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 PT Astra will offset losses from the drop in PT Astra's long position.| Fbec Worldwide vs. Flow Beverage Corp | Fbec Worldwide vs. Barfresh Food Group | Fbec Worldwide vs. Hill Street Beverage | Fbec Worldwide vs. DNA Brands |
| PT Astra vs. Embotelladora Andina SA | PT Astra vs. Embotelladora Andina SA | PT Astra vs. Apple Rush | PT Astra vs. Alkame Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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