Correlation Between Hero Supermarket and Fks Multi
Can any of the company-specific risk be diversified away by investing in both Hero Supermarket and Fks Multi 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 Fks Multi 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 Fks Multi Agro, you can compare the effects of market volatilities on Hero Supermarket and Fks Multi 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 Fks Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hero Supermarket and Fks Multi.
Diversification Opportunities for Hero Supermarket and Fks Multi
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hero and Fks is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hero Supermarket Tbk and Fks Multi Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fks Multi Agro 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 Fks Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fks Multi Agro has no effect on the direction of Hero Supermarket i.e., Hero Supermarket and Fks Multi go up and down completely randomly.
Pair Corralation between Hero Supermarket and Fks Multi
Assuming the 90 days trading horizon Hero Supermarket Tbk is expected to under-perform the Fks Multi. In addition to that, Hero Supermarket is 1.35 times more volatile than Fks Multi Agro. It trades about -0.09 of its total potential returns per unit of risk. Fks Multi Agro is currently generating about 0.17 per unit of volatility. If you would invest 514,623 in Fks Multi Agro on September 1, 2024 and sell it today you would earn a total of 567,877 from holding Fks Multi Agro or generate 110.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hero Supermarket Tbk vs. Fks Multi Agro
Performance |
| Timeline |
| Hero Supermarket Tbk |
| Fks Multi Agro |
Hero Supermarket and Fks Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hero Supermarket and Fks Multi
The main advantage of trading using opposite Hero Supermarket and Fks Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hero Supermarket position performs unexpectedly, Fks Multi 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 Fks Multi will offset losses from the drop in Fks Multi's long position.| Hero Supermarket vs. Bank BRISyariah Tbk | Hero Supermarket vs. Mitra Pinasthika Mustika | Hero Supermarket vs. Jakarta Int Hotels | Hero Supermarket vs. Indosterling Technomedia Tbk |
| Fks Multi vs. Bank BRISyariah Tbk | Fks Multi vs. Mitra Pinasthika Mustika | Fks Multi vs. Jakarta Int Hotels | Fks Multi vs. Indosterling Technomedia 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |