Correlation Between Fks Multi and Palma Serasih
Can any of the company-specific risk be diversified away by investing in both Fks Multi and Palma Serasih 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 Palma Serasih 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 Palma Serasih PT, you can compare the effects of market volatilities on Fks Multi and Palma Serasih 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 Palma Serasih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fks Multi and Palma Serasih.
Diversification Opportunities for Fks Multi and Palma Serasih
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fks and Palma is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fks Multi Agro and Palma Serasih PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palma Serasih PT 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 Palma Serasih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palma Serasih PT has no effect on the direction of Fks Multi i.e., Fks Multi and Palma Serasih go up and down completely randomly.
Pair Corralation between Fks Multi and Palma Serasih
Assuming the 90 days trading horizon Fks Multi Agro is expected to under-perform the Palma Serasih. But the stock apears to be less risky and, when comparing its historical volatility, Fks Multi Agro is 2.67 times less risky than Palma Serasih. The stock trades about -0.25 of its potential returns per unit of risk. The Palma Serasih PT is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 19,100 in Palma Serasih PT on November 5, 2024 and sell it today you would earn a total of 700.00 from holding Palma Serasih PT or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Fks Multi Agro vs. Palma Serasih PT
Performance |
| Timeline |
| Fks Multi Agro |
| Palma Serasih PT |
Fks Multi and Palma Serasih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fks Multi and Palma Serasih
The main advantage of trading using opposite Fks Multi and Palma Serasih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fks Multi position performs unexpectedly, Palma Serasih 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 Palma Serasih will offset losses from the drop in Palma Serasih'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 |
| Palma Serasih vs. Mahkota Group Tbk | Palma Serasih vs. Provident Agro Tbk | Palma Serasih vs. Putra Mandiri Jembar | Palma Serasih vs. Cisadane Sawit Raya |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |