Correlation Between FANDIFI TECHNOLOGY and PT Astra
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and PT Astra 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 FANDIFI TECHNOLOGY and PT Astra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and PT Astra International, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and PT Astra 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 FANDIFI TECHNOLOGY with a short position of PT Astra. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and PT Astra.
Diversification Opportunities for FANDIFI TECHNOLOGY and PT Astra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and ASJA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and PT Astra International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Astra International and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with PT Astra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Astra International has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and PT Astra go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and PT Astra
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 5.71 times more return on investment than PT Astra. However, FANDIFI TECHNOLOGY is 5.71 times more volatile than PT Astra International. It trades about 0.04 of its potential returns per unit of risk. PT Astra International is currently generating about 0.01 per unit of risk. If you would invest 3.25 in FANDIFI TECHNOLOGY P on November 5, 2024 and sell it today you would lose (3.20) from holding FANDIFI TECHNOLOGY P or give up 98.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. PT Astra International
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| PT Astra International |
FANDIFI TECHNOLOGY and PT Astra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and PT Astra
The main advantage of trading using opposite FANDIFI TECHNOLOGY and PT Astra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, PT Astra 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 PT Astra will offset losses from the drop in PT Astra's long position.| FANDIFI TECHNOLOGY vs. Ribbon Communications | FANDIFI TECHNOLOGY vs. Neinor Homes SA | FANDIFI TECHNOLOGY vs. Entravision Communications | FANDIFI TECHNOLOGY vs. CENTURIA OFFICE REIT |
| PT Astra vs. Playtech plc | PT Astra vs. InPlay Oil Corp | PT Astra vs. ePlay Digital | PT Astra vs. LG Display Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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