Correlation Between HK Metals and FKS Food
Can any of the company-specific risk be diversified away by investing in both HK Metals and FKS Food 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 HK Metals and FKS Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Metals Utama and FKS Food Sejahtera, you can compare the effects of market volatilities on HK Metals and FKS Food 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 HK Metals with a short position of FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and FKS Food.
Diversification Opportunities for HK Metals and FKS Food
Pay attention - limited upside
The 3 months correlation between HKMU and FKS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and FKS Food Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FKS Food Sejahtera and HK Metals 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 HK Metals Utama are associated (or correlated) with FKS Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FKS Food Sejahtera has no effect on the direction of HK Metals i.e., HK Metals and FKS Food go up and down completely randomly.
Pair Corralation between HK Metals and FKS Food
If you would invest 11,900 in FKS Food Sejahtera on August 31, 2024 and sell it today you would lose (100.00) from holding FKS Food Sejahtera or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
HK Metals Utama vs. FKS Food Sejahtera
Performance |
| Timeline |
| HK Metals Utama |
| FKS Food Sejahtera |
HK Metals and FKS Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and FKS Food
The main advantage of trading using opposite HK Metals and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, FKS Food 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 Food will offset losses from the drop in FKS Food's long position.| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
| FKS Food vs. Bank BRISyariah Tbk | FKS Food vs. Mitra Pinasthika Mustika | FKS Food vs. Jakarta Int Hotels | FKS Food 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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