Correlation Between Hero Supermarket and Campina Ice
Can any of the company-specific risk be diversified away by investing in both Hero Supermarket 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 Hero Supermarket and Campina Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hero Supermarket Tbk and Campina Ice Cream, you can compare the effects of market volatilities on Hero Supermarket 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 Hero Supermarket with a short position of Campina Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hero Supermarket and Campina Ice.
Diversification Opportunities for Hero Supermarket and Campina Ice
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hero and Campina is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hero Supermarket Tbk 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 Hero Supermarket 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 Hero Supermarket Tbk 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 Hero Supermarket i.e., Hero Supermarket and Campina Ice go up and down completely randomly.
Pair Corralation between Hero Supermarket and Campina Ice
Assuming the 90 days trading horizon Hero Supermarket Tbk is expected to under-perform the Campina Ice. In addition to that, Hero Supermarket is 1.09 times more volatile than Campina Ice Cream. It trades about -0.41 of its total potential returns per unit of risk. Campina Ice Cream is currently generating about -0.09 per unit of volatility. If you would invest 26,800 in Campina Ice Cream on September 4, 2024 and sell it today you would lose (1,000.00) from holding Campina Ice Cream or give up 3.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hero Supermarket Tbk vs. Campina Ice Cream
Performance |
| Timeline |
| Hero Supermarket Tbk |
| Campina Ice Cream |
Hero Supermarket and Campina Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hero Supermarket and Campina Ice
The main advantage of trading using opposite Hero Supermarket and Campina Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hero Supermarket 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.| Hero Supermarket vs. Fast Food Indonesia | Hero Supermarket vs. Enseval Putra Megatrading | Hero Supermarket vs. Matahari Putra Prima | Hero Supermarket vs. Hexindo Adiperkasa Tbk |
| Campina Ice vs. Sariguna Primatirta PT | Campina Ice vs. Garudafood Putra Putri | Campina Ice vs. Buyung Poetra Sembada | Campina Ice vs. Integra Indocabinet 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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