Correlation Between Ashmore Asset and FKS Food
Can any of the company-specific risk be diversified away by investing in both Ashmore Asset and FKS 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 Ashmore Asset and FKS Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Asset Management and FKS Food Sejahtera, you can compare the effects of market volatilities on Ashmore Asset and FKS 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 Ashmore Asset with a short position of FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Asset and FKS Food.
Diversification Opportunities for Ashmore Asset and FKS Food
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ashmore and FKS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Asset Management and FKS Food Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FKS Food Sejahtera and Ashmore Asset 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 Ashmore Asset Management are associated (or correlated) with FKS Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FKS Food Sejahtera has no effect on the direction of Ashmore Asset i.e., Ashmore Asset and FKS Food go up and down completely randomly.
Pair Corralation between Ashmore Asset and FKS Food
Assuming the 90 days trading horizon Ashmore Asset Management is expected to under-perform the FKS Food. In addition to that, Ashmore Asset is 1.13 times more volatile than FKS Food Sejahtera. It trades about -0.21 of its total potential returns per unit of risk. FKS Food Sejahtera is currently generating about 0.03 per unit of volatility. If you would invest 10,500 in FKS Food Sejahtera on December 30, 2024 and sell it today you would earn a total of 200.00 from holding FKS Food Sejahtera or generate 1.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ashmore Asset Management vs. FKS Food Sejahtera
Performance |
Timeline |
Ashmore Asset Management |
FKS Food Sejahtera |
Ashmore Asset and FKS Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ashmore Asset and FKS Food
The main advantage of trading using opposite Ashmore Asset and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Asset position performs unexpectedly, FKS 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 FKS Food will offset losses from the drop in FKS Food's long position.Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mahaka Radio Integra | Ashmore Asset vs. Ateliers Mecaniques DIndonesie |
FKS Food vs. Alam Sutera Realty | FKS Food vs. Sentul City Tbk | FKS Food vs. Gajah Tunggal Tbk | FKS Food vs. Akr Corporindo 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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