Correlation Between Hotel Fitra and Campina Ice
Can any of the company-specific risk be diversified away by investing in both Hotel Fitra and Campina Ice 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 Hotel Fitra and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Fitra International and Campina Ice Cream, you can compare the effects of market volatilities on Hotel Fitra and Campina Ice 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 Hotel Fitra with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Fitra and Campina Ice.
Diversification Opportunities for Hotel Fitra and Campina Ice
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hotel and Campina is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Fitra International and Campina Ice Cream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campina Ice Cream and Hotel Fitra 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 Hotel Fitra International are associated (or correlated) with Campina Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campina Ice Cream has no effect on the direction of Hotel Fitra i.e., Hotel Fitra and Campina Ice go up and down completely randomly.
Pair Corralation between Hotel Fitra and Campina Ice
Assuming the 90 days trading horizon Hotel Fitra International is expected to under-perform the Campina Ice. But the stock apears to be less risky and, when comparing its historical volatility, Hotel Fitra International is 1.22 times less risky than Campina Ice. The stock trades about -0.08 of its potential returns per unit of risk. The Campina Ice Cream is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 25,962 in Campina Ice Cream on August 28, 2024 and sell it today you would earn a total of 838.00 from holding Campina Ice Cream or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hotel Fitra International vs. Campina Ice Cream
Performance |
| Timeline |
| Hotel Fitra International |
| Campina Ice Cream |
Hotel Fitra and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Fitra and Campina Ice
The main advantage of trading using opposite Hotel Fitra and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Fitra position performs unexpectedly, Campina Ice 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 Campina Ice will offset losses from the drop in Campina Ice's long position.| Hotel Fitra vs. Jasa Armada Indonesia | Hotel Fitra vs. Cahayaputra Asa Keramik | Hotel Fitra vs. Campina Ice Cream |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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