Correlation Between Japfa Comfeed and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and Asia Pacific 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 Japfa Comfeed and Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japfa Comfeed Indonesia and Asia Pacific Investama, you can compare the effects of market volatilities on Japfa Comfeed and Asia Pacific 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 Japfa Comfeed with a short position of Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and Asia Pacific.
Diversification Opportunities for Japfa Comfeed and Asia Pacific
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Japfa and Asia is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama and Japfa Comfeed 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 Japfa Comfeed Indonesia are associated (or correlated) with Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and Asia Pacific go up and down completely randomly.
Pair Corralation between Japfa Comfeed and Asia Pacific
Assuming the 90 days trading horizon Japfa Comfeed Indonesia is expected to generate 0.59 times more return on investment than Asia Pacific. However, Japfa Comfeed Indonesia is 1.69 times less risky than Asia Pacific. It trades about 0.1 of its potential returns per unit of risk. Asia Pacific Investama is currently generating about -0.05 per unit of risk. If you would invest 130,547 in Japfa Comfeed Indonesia on September 1, 2024 and sell it today you would earn a total of 40,953 from holding Japfa Comfeed Indonesia or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japfa Comfeed Indonesia vs. Asia Pacific Investama
Performance |
| Timeline |
| Japfa Comfeed Indonesia |
| Asia Pacific Investama |
Japfa Comfeed and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japfa Comfeed and Asia Pacific
The main advantage of trading using opposite Japfa Comfeed and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
| Asia Pacific vs. Japfa Comfeed Indonesia | Asia Pacific vs. Charoen Pokphand Indonesia | Asia Pacific vs. Erajaya Swasembada Tbk | Asia Pacific vs. Indofood Cbp Sukses |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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