Correlation Between Inocycle Technology and Fast Food
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Fast 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 Inocycle Technology and Fast Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inocycle Technology Tbk and Fast Food Indonesia, you can compare the effects of market volatilities on Inocycle Technology and Fast 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 Inocycle Technology with a short position of Fast Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Fast Food.
Diversification Opportunities for Inocycle Technology and Fast Food
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inocycle and Fast is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Fast Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Food Indonesia and Inocycle Technology 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 Inocycle Technology Tbk are associated (or correlated) with Fast Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Food Indonesia has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Fast Food go up and down completely randomly.
Pair Corralation between Inocycle Technology and Fast Food
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to generate 1.63 times more return on investment than Fast Food. However, Inocycle Technology is 1.63 times more volatile than Fast Food Indonesia. It trades about 0.0 of its potential returns per unit of risk. Fast Food Indonesia is currently generating about -0.07 per unit of risk. If you would invest 13,400 in Inocycle Technology Tbk on September 2, 2024 and sell it today you would lose (3,400) from holding Inocycle Technology Tbk or give up 25.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Fast Food Indonesia
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Fast Food Indonesia |
Inocycle Technology and Fast Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Fast Food
The main advantage of trading using opposite Inocycle Technology and Fast Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Fast 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 Fast Food will offset losses from the drop in Fast Food's long position.| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
| Fast Food vs. Hero Supermarket Tbk | Fast Food vs. Indoritel Makmur Internasional | Fast Food vs. Enseval Putra Megatrading | Fast Food vs. Fks Multi Agro |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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