Correlation Between Planet Properindo and Hotel Fitra
Can any of the company-specific risk be diversified away by investing in both Planet Properindo 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 Planet Properindo and Hotel Fitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Planet Properindo Jaya and Hotel Fitra International, you can compare the effects of market volatilities on Planet Properindo 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 Planet Properindo with a short position of Hotel Fitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Planet Properindo and Hotel Fitra.
Diversification Opportunities for Planet Properindo and Hotel Fitra
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Planet and Hotel is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Planet Properindo Jaya 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 Planet Properindo 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 Planet Properindo Jaya 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 Planet Properindo i.e., Planet Properindo and Hotel Fitra go up and down completely randomly.
Pair Corralation between Planet Properindo and Hotel Fitra
Assuming the 90 days trading horizon Planet Properindo Jaya is expected to under-perform the Hotel Fitra. In addition to that, Planet Properindo is 5.39 times more volatile than Hotel Fitra International. It trades about -0.14 of its total potential returns per unit of risk. Hotel Fitra International is currently generating about 0.07 per unit of volatility. If you would invest 9,600 in Hotel Fitra International on October 9, 2024 and sell it today you would earn a total of 100.00 from holding Hotel Fitra International or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Planet Properindo Jaya vs. Hotel Fitra International
Performance |
| Timeline |
| Planet Properindo Jaya |
| Hotel Fitra International |
Planet Properindo and Hotel Fitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Planet Properindo and Hotel Fitra
The main advantage of trading using opposite Planet Properindo and Hotel Fitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Planet Properindo 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.| Planet Properindo vs. Hotel Fitra International | Planet Properindo vs. Jasa Armada Indonesia | Planet Properindo vs. Cahayaputra Asa Keramik | Planet Properindo 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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