Correlation Between Fks Multi and Gema Grahasarana
Can any of the company-specific risk be diversified away by investing in both Fks Multi and Gema Grahasarana 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 Gema Grahasarana 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 Gema Grahasarana Tbk, you can compare the effects of market volatilities on Fks Multi and Gema Grahasarana 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 Gema Grahasarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fks Multi and Gema Grahasarana.
Diversification Opportunities for Fks Multi and Gema Grahasarana
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fks and Gema is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fks Multi Agro and Gema Grahasarana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gema Grahasarana Tbk 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 Gema Grahasarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gema Grahasarana Tbk has no effect on the direction of Fks Multi i.e., Fks Multi and Gema Grahasarana go up and down completely randomly.
Pair Corralation between Fks Multi and Gema Grahasarana
Assuming the 90 days trading horizon Fks Multi Agro is expected to generate 0.51 times more return on investment than Gema Grahasarana. However, Fks Multi Agro is 1.96 times less risky than Gema Grahasarana. It trades about 0.18 of its potential returns per unit of risk. Gema Grahasarana Tbk is currently generating about 0.01 per unit of risk. If you would invest 514,623 in Fks Multi Agro on August 25, 2024 and sell it today you would earn a total of 575,377 from holding Fks Multi Agro or generate 111.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Fks Multi Agro vs. Gema Grahasarana Tbk
Performance |
| Timeline |
| Fks Multi Agro |
| Gema Grahasarana Tbk |
Fks Multi and Gema Grahasarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fks Multi and Gema Grahasarana
The main advantage of trading using opposite Fks Multi and Gema Grahasarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fks Multi position performs unexpectedly, Gema Grahasarana 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 Gema Grahasarana will offset losses from the drop in Gema Grahasarana'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 |
| Gema Grahasarana vs. Fortune Indonesia Tbk | Gema Grahasarana vs. Fks Multi Agro | Gema Grahasarana vs. Bayu Buana Tbk | Gema Grahasarana vs. Fast Food Indonesia |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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