Correlation Between MAP Aktif and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both MAP Aktif and Japfa Comfeed 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 MAP Aktif and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAP Aktif Adiperkasa and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on MAP Aktif and Japfa Comfeed 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 MAP Aktif with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAP Aktif and Japfa Comfeed.
Diversification Opportunities for MAP Aktif and Japfa Comfeed
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MAP and Japfa is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding MAP Aktif Adiperkasa and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and MAP Aktif 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 MAP Aktif Adiperkasa are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of MAP Aktif i.e., MAP Aktif and Japfa Comfeed go up and down completely randomly.
Pair Corralation between MAP Aktif and Japfa Comfeed
Assuming the 90 days trading horizon MAP Aktif Adiperkasa is expected to under-perform the Japfa Comfeed. In addition to that, MAP Aktif is 1.75 times more volatile than Japfa Comfeed Indonesia. It trades about -0.3 of its total potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about -0.17 per unit of volatility. If you would invest 200,000 in Japfa Comfeed Indonesia on December 1, 2024 and sell it today you would lose (13,000) from holding Japfa Comfeed Indonesia or give up 6.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAP Aktif Adiperkasa vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| MAP Aktif Adiperkasa |
| Japfa Comfeed Indonesia |
MAP Aktif and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAP Aktif and Japfa Comfeed
The main advantage of trading using opposite MAP Aktif and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAP Aktif position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Map Boga Adiperkasa | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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