Correlation Between Ace Hardware and Panca Global
Can any of the company-specific risk be diversified away by investing in both Ace Hardware and Panca Global 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 Ace Hardware and Panca Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ace Hardware Indonesia and Panca Global Securities, you can compare the effects of market volatilities on Ace Hardware and Panca Global 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 Ace Hardware with a short position of Panca Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ace Hardware and Panca Global.
Diversification Opportunities for Ace Hardware and Panca Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ace and Panca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ace Hardware Indonesia and Panca Global Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Global Securities and Ace Hardware 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 Ace Hardware Indonesia are associated (or correlated) with Panca Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Global Securities has no effect on the direction of Ace Hardware i.e., Ace Hardware and Panca Global go up and down completely randomly.
Pair Corralation between Ace Hardware and Panca Global
Assuming the 90 days trading horizon Ace Hardware Indonesia is expected to under-perform the Panca Global. But the stock apears to be less risky and, when comparing its historical volatility, Ace Hardware Indonesia is 1.12 times less risky than Panca Global. The stock trades about -0.1 of its potential returns per unit of risk. The Panca Global Securities is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 11,200 in Panca Global Securities on December 1, 2024 and sell it today you would lose (1,200) from holding Panca Global Securities or give up 10.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ace Hardware Indonesia vs. Panca Global Securities
Performance |
Timeline |
Ace Hardware Indonesia |
Panca Global Securities |
Ace Hardware and Panca Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ace Hardware and Panca Global
The main advantage of trading using opposite Ace Hardware and Panca Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ace Hardware position performs unexpectedly, Panca Global 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 Panca Global will offset losses from the drop in Panca Global's long position.Ace Hardware vs. Japfa Comfeed Indonesia | Ace Hardware vs. Charoen Pokphand Indonesia | Ace Hardware vs. Erajaya Swasembada Tbk | Ace Hardware vs. Indofood Cbp Sukses |
Panca Global vs. Panin Sekuritas Tbk | Panca Global vs. Reliance Securities Tbk | Panca Global vs. Mandala Multifinance Tbk | Panca Global vs. Paninvest Tbk |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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