Correlation Between Fortune Mate and Jakarta Int
Can any of the company-specific risk be diversified away by investing in both Fortune Mate and Jakarta Int 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 Fortune Mate and Jakarta Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Mate Indonesia and Jakarta Int Hotels, you can compare the effects of market volatilities on Fortune Mate and Jakarta Int 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 Fortune Mate with a short position of Jakarta Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Mate and Jakarta Int.
Diversification Opportunities for Fortune Mate and Jakarta Int
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fortune and Jakarta is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Mate Indonesia and Jakarta Int Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakarta Int Hotels and Fortune Mate 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 Fortune Mate Indonesia are associated (or correlated) with Jakarta Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakarta Int Hotels has no effect on the direction of Fortune Mate i.e., Fortune Mate and Jakarta Int go up and down completely randomly.
Pair Corralation between Fortune Mate and Jakarta Int
Assuming the 90 days trading horizon Fortune Mate Indonesia is expected to generate 10.05 times more return on investment than Jakarta Int. However, Fortune Mate is 10.05 times more volatile than Jakarta Int Hotels. It trades about 0.06 of its potential returns per unit of risk. Jakarta Int Hotels is currently generating about 0.13 per unit of risk. If you would invest 12,330 in Fortune Mate Indonesia on September 2, 2024 and sell it today you would earn a total of 42,170 from holding Fortune Mate Indonesia or generate 342.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fortune Mate Indonesia vs. Jakarta Int Hotels
Performance |
| Timeline |
| Fortune Mate Indonesia |
| Jakarta Int Hotels |
Fortune Mate and Jakarta Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Mate and Jakarta Int
The main advantage of trading using opposite Fortune Mate and Jakarta Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Mate position performs unexpectedly, Jakarta Int 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 Jakarta Int will offset losses from the drop in Jakarta Int's long position.| Fortune Mate vs. Lippo Cikarang Tbk | Fortune Mate vs. Bekasi Asri Pemula | Fortune Mate vs. Mitra Pinasthika Mustika | Fortune Mate vs. Jakarta Int Hotels |
| Jakarta Int vs. Jaya Real Property | Jakarta Int vs. Mnc Land Tbk | Jakarta Int vs. Kawasan Industri Jababeka | Jakarta Int vs. Duta Pertiwi 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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