Correlation Between Hotel Sahid and Hotel Fitra
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid 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 Hotel Sahid and Hotel Fitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Hotel Fitra International, you can compare the effects of market volatilities on Hotel Sahid 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 Hotel Sahid with a short position of Hotel Fitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Hotel Fitra.
Diversification Opportunities for Hotel Sahid and Hotel Fitra
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Hotel is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid i.e., Hotel Sahid and Hotel Fitra go up and down completely randomly.
Pair Corralation between Hotel Sahid and Hotel Fitra
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to generate 2.12 times more return on investment than Hotel Fitra. However, Hotel Sahid is 2.12 times more volatile than Hotel Fitra International. It trades about -0.01 of its potential returns per unit of risk. Hotel Fitra International is currently generating about -0.09 per unit of risk. If you would invest 211,000 in Hotel Sahid Jaya on December 7, 2024 and sell it today you would lose (131,500) from holding Hotel Sahid Jaya or give up 62.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Hotel Fitra International
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Hotel Fitra International |
Hotel Sahid and Hotel Fitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Hotel Fitra
The main advantage of trading using opposite Hotel Sahid and Hotel Fitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid 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.| Hotel Sahid vs. Pembangunan Jaya Ancol | ||
| Hotel Sahid vs. Panorama Sentrawisata Tbk | ||
| Hotel Sahid vs. Sona Topas Tourism | ||
| Hotel Sahid vs. Millennium Pharmacon International |
| Hotel Fitra vs. Eastparc Hotel Tbk | ||
| Hotel Fitra vs. Menteng Heritage Realty | ||
| Hotel Fitra vs. Sanurhasta Mitra PT | ||
| Hotel Fitra vs. Sentra Food Indonesia |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |