Correlation Between PT Ace and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both PT Ace and FANDIFI TECHNOLOGY 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 PT Ace and FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Ace Hardware and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on PT Ace and FANDIFI TECHNOLOGY 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 PT Ace with a short position of FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Ace and FANDIFI TECHNOLOGY.
Diversification Opportunities for PT Ace and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 4AH1 and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Ace Hardware and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY and PT Ace 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 PT Ace Hardware are associated (or correlated) with FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of PT Ace i.e., PT Ace and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between PT Ace and FANDIFI TECHNOLOGY
Assuming the 90 days trading horizon PT Ace Hardware is expected to generate 1.26 times more return on investment than FANDIFI TECHNOLOGY. However, PT Ace is 1.26 times more volatile than FANDIFI TECHNOLOGY P. It trades about 0.04 of its potential returns per unit of risk. FANDIFI TECHNOLOGY P is currently generating about -0.01 per unit of risk. If you would invest 4.05 in PT Ace Hardware on December 5, 2024 and sell it today you would lose (0.75) from holding PT Ace Hardware or give up 18.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
PT Ace Hardware vs. FANDIFI TECHNOLOGY P
Performance |
Timeline |
PT Ace Hardware |
FANDIFI TECHNOLOGY |
PT Ace and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Ace and FANDIFI TECHNOLOGY
The main advantage of trading using opposite PT Ace and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Ace position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.PT Ace vs. AIR PRODCHEMICALS | PT Ace vs. Siamgas And Petrochemicals | PT Ace vs. Tower One Wireless | PT Ace vs. OFFICE DEPOT |
FANDIFI TECHNOLOGY vs. MAGIC SOFTWARE ENTR | FANDIFI TECHNOLOGY vs. Brockhaus Capital Management | FANDIFI TECHNOLOGY vs. Axway Software SA | FANDIFI TECHNOLOGY vs. Jupiter Fund Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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