Correlation Between Fks Multi and PT Dewi
Can any of the company-specific risk be diversified away by investing in both Fks Multi and PT Dewi 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 Fks Multi and PT Dewi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fks Multi Agro and PT Dewi Shri, you can compare the effects of market volatilities on Fks Multi and PT Dewi 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 Fks Multi with a short position of PT Dewi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fks Multi and PT Dewi.
Diversification Opportunities for Fks Multi and PT Dewi
Poor diversification
The 3 months correlation between Fks and DEWI is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fks Multi Agro and PT Dewi Shri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Dewi Shri and Fks Multi 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 Fks Multi Agro are associated (or correlated) with PT Dewi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Dewi Shri has no effect on the direction of Fks Multi i.e., Fks Multi and PT Dewi go up and down completely randomly.
Pair Corralation between Fks Multi and PT Dewi
Assuming the 90 days trading horizon Fks Multi Agro is expected to under-perform the PT Dewi. But the stock apears to be less risky and, when comparing its historical volatility, Fks Multi Agro is 7.9 times less risky than PT Dewi. The stock trades about -0.44 of its potential returns per unit of risk. The PT Dewi Shri is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 8,500 in PT Dewi Shri on August 31, 2024 and sell it today you would lose (100.00) from holding PT Dewi Shri or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fks Multi Agro vs. PT Dewi Shri
Performance |
| Timeline |
| Fks Multi Agro |
| PT Dewi Shri |
Fks Multi and PT Dewi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fks Multi and PT Dewi
The main advantage of trading using opposite Fks Multi and PT Dewi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fks Multi position performs unexpectedly, PT Dewi 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 Dewi will offset losses from the drop in PT Dewi's long position.| Fks Multi vs. Enseval Putra Megatrading | Fks Multi vs. Fast Food Indonesia | Fks Multi vs. Gema Grahasarana Tbk | Fks Multi vs. Colorpak Indonesia Tbk |
| PT Dewi vs. Habco Trans Maritima | PT Dewi vs. PT Cilacap Samudera | PT Dewi vs. PT Sari Kreasi | PT Dewi vs. Autopedia Sukses Lestari |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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