Correlation Between Rimo International and Ace Hardware
Can any of the company-specific risk be diversified away by investing in both Rimo International and Ace Hardware 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 Rimo International and Ace Hardware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rimo International Lestari and Ace Hardware Indonesia, you can compare the effects of market volatilities on Rimo International and Ace Hardware 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 Rimo International with a short position of Ace Hardware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimo International and Ace Hardware.
Diversification Opportunities for Rimo International and Ace Hardware
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rimo and Ace is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rimo International Lestari and Ace Hardware Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Hardware Indonesia and Rimo International 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 Rimo International Lestari are associated (or correlated) with Ace Hardware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Hardware Indonesia has no effect on the direction of Rimo International i.e., Rimo International and Ace Hardware go up and down completely randomly.
Pair Corralation between Rimo International and Ace Hardware
If you would invest 5,000 in Rimo International Lestari on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Rimo International Lestari or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rimo International Lestari vs. Ace Hardware Indonesia
Performance |
| Timeline |
| Rimo International |
| Ace Hardware Indonesia |
Rimo International and Ace Hardware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimo International and Ace Hardware
The main advantage of trading using opposite Rimo International and Ace Hardware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimo International position performs unexpectedly, Ace Hardware 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 Ace Hardware will offset losses from the drop in Ace Hardware's long position.| Rimo International vs. Smartfren Telecom Tbk | Rimo International vs. Steel Pipe Industry | Rimo International vs. Garuda Metalindo Tbk | Rimo International vs. Merdeka Copper Gold |
| Ace Hardware vs. Japfa Comfeed Indonesia | Ace Hardware vs. Charoen Pokphand Indonesia | Ace Hardware vs. Erajaya Swasembada Tbk | Ace Hardware 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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