Correlation Between Fks Multi and Jaya Konstruksi
Can any of the company-specific risk be diversified away by investing in both Fks Multi and Jaya Konstruksi 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 Jaya Konstruksi 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 Jaya Konstruksi Manggala, you can compare the effects of market volatilities on Fks Multi and Jaya Konstruksi 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 Jaya Konstruksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fks Multi and Jaya Konstruksi.
Diversification Opportunities for Fks Multi and Jaya Konstruksi
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fks and Jaya is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fks Multi Agro and Jaya Konstruksi Manggala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Konstruksi Manggala 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 Jaya Konstruksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Konstruksi Manggala has no effect on the direction of Fks Multi i.e., Fks Multi and Jaya Konstruksi go up and down completely randomly.
Pair Corralation between Fks Multi and Jaya Konstruksi
Assuming the 90 days trading horizon Fks Multi Agro is expected to generate 0.07 times more return on investment than Jaya Konstruksi. However, Fks Multi Agro is 14.19 times less risky than Jaya Konstruksi. It trades about -0.44 of its potential returns per unit of risk. Jaya Konstruksi Manggala is currently generating about -0.23 per unit of risk. If you would invest 1,100,000 in Fks Multi Agro on August 31, 2024 and sell it today you would lose (15,000) from holding Fks Multi Agro or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fks Multi Agro vs. Jaya Konstruksi Manggala
Performance |
| Timeline |
| Fks Multi Agro |
| Jaya Konstruksi Manggala |
Fks Multi and Jaya Konstruksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fks Multi and Jaya Konstruksi
The main advantage of trading using opposite Fks Multi and Jaya Konstruksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fks Multi position performs unexpectedly, Jaya Konstruksi 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 Jaya Konstruksi will offset losses from the drop in Jaya Konstruksi'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 |
| Jaya Konstruksi vs. Matahari Department Store | Jaya Konstruksi vs. Multi Medika Internasional | Jaya Konstruksi vs. Visi Media Asia | Jaya Konstruksi vs. Bayan Resources 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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