Correlation Between Menteng Heritage and Hotel Fitra
Can any of the company-specific risk be diversified away by investing in both Menteng Heritage and Hotel Fitra 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 Menteng Heritage and Hotel Fitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menteng Heritage Realty and Hotel Fitra International, you can compare the effects of market volatilities on Menteng Heritage and Hotel Fitra 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 Menteng Heritage with a short position of Hotel Fitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menteng Heritage and Hotel Fitra.
Diversification Opportunities for Menteng Heritage and Hotel Fitra
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Menteng and Hotel is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Menteng Heritage Realty and Hotel Fitra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Fitra International and Menteng Heritage 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 Menteng Heritage Realty are associated (or correlated) with Hotel Fitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Fitra International has no effect on the direction of Menteng Heritage i.e., Menteng Heritage and Hotel Fitra go up and down completely randomly.
Pair Corralation between Menteng Heritage and Hotel Fitra
Assuming the 90 days trading horizon Menteng Heritage Realty is expected to generate 4.93 times more return on investment than Hotel Fitra. However, Menteng Heritage is 4.93 times more volatile than Hotel Fitra International. It trades about 0.37 of its potential returns per unit of risk. Hotel Fitra International is currently generating about -0.14 per unit of risk. If you would invest 3,300 in Menteng Heritage Realty on August 28, 2024 and sell it today you would earn a total of 1,400 from holding Menteng Heritage Realty or generate 42.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menteng Heritage Realty vs. Hotel Fitra International
Performance |
| Timeline |
| Menteng Heritage Realty |
| Hotel Fitra International |
Menteng Heritage and Hotel Fitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menteng Heritage and Hotel Fitra
The main advantage of trading using opposite Menteng Heritage and Hotel Fitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menteng Heritage position performs unexpectedly, Hotel Fitra 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 Hotel Fitra will offset losses from the drop in Hotel Fitra's long position.| Menteng Heritage vs. Jasa Armada Indonesia | Menteng Heritage vs. Cahayaputra Asa Keramik | Menteng Heritage vs. Campina Ice Cream |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |