Correlation Between Sri Rejeki and Fast Food
Can any of the company-specific risk be diversified away by investing in both Sri Rejeki and Fast Food 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 Sri Rejeki and Fast Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sri Rejeki IsmanPT and Fast Food Indonesia, you can compare the effects of market volatilities on Sri Rejeki and Fast Food 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 Sri Rejeki with a short position of Fast Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Rejeki and Fast Food.
Diversification Opportunities for Sri Rejeki and Fast Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sri and Fast is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sri Rejeki IsmanPT and Fast Food Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Food Indonesia and Sri Rejeki 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 Sri Rejeki IsmanPT are associated (or correlated) with Fast Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Food Indonesia has no effect on the direction of Sri Rejeki i.e., Sri Rejeki and Fast Food go up and down completely randomly.
Pair Corralation between Sri Rejeki and Fast Food
If you would invest 14,600 in Sri Rejeki IsmanPT on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Sri Rejeki IsmanPT 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 |
Sri Rejeki IsmanPT vs. Fast Food Indonesia
Performance |
| Timeline |
| Sri Rejeki IsmanPT |
| Fast Food Indonesia |
Sri Rejeki and Fast Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Rejeki and Fast Food
The main advantage of trading using opposite Sri Rejeki and Fast Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Rejeki position performs unexpectedly, Fast Food 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 Fast Food will offset losses from the drop in Fast Food's long position.| Sri Rejeki vs. Fast Food Indonesia | Sri Rejeki vs. Indointernet Tbk PT | Sri Rejeki vs. Enseval Putra Megatrading | Sri Rejeki vs. PT Homeco Victoria |
| Fast Food vs. Hero Supermarket Tbk | Fast Food vs. Indoritel Makmur Internasional | Fast Food vs. Enseval Putra Megatrading | Fast Food vs. Fks Multi Agro |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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