Correlation Between FANDIFI TECHNOLOGY and PT Ace

Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and PT Ace 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 Ace 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 Ace Hardware, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and PT Ace 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 Ace. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and PT Ace.

Diversification Opportunities for FANDIFI TECHNOLOGY and PT Ace

0.0

Correlation Coefficient

FANDIFI TECHNOLOGY  PT Ace

Pay attention - limited upside

The 3 months correlation between FANDIFI and 4AH1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and PT Ace Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Ace Hardware 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 Ace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Ace Hardware has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and PT Ace go up and down completely randomly.

Pair Corralation between FANDIFI TECHNOLOGY and PT Ace

Assuming the 90 days horizon FANDIFI TECHNOLOGY is expected to generate 1.03 times less return on investment than PT Ace. In addition to that, FANDIFI TECHNOLOGY is 1.65 times more volatile than PT Ace Hardware. It trades about 0.03 of its total potential returns per unit of risk. PT Ace Hardware is currently generating about 0.06 per unit of volatility. If you would invest  3.50  in PT Ace Hardware on September 17, 2024 and sell it today you would earn a total of  0.65  from holding PT Ace Hardware or generate 18.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

FANDIFI TECHNOLOGY P  vs.  PT Ace Hardware

FANDIFI TECHNOLOGY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FANDIFI TECHNOLOGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, FANDIFI TECHNOLOGY is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PT Ace Hardware

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PT Ace Hardware are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, PT Ace may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with FANDIFI TECHNOLOGY and PT Ace

The main advantage of trading using opposite FANDIFI TECHNOLOGY and PT Ace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, PT Ace 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 Ace will offset losses from the drop in PT Ace's long position.

The idea behind FANDIFI TECHNOLOGY P and PT Ace Hardware pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.