Correlation Between Waskita Beton and FKS Food
Can any of the company-specific risk be diversified away by investing in both Waskita Beton 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 Waskita Beton and FKS Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waskita Beton Precast and FKS Food Sejahtera, you can compare the effects of market volatilities on Waskita Beton 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 Waskita Beton with a short position of FKS Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waskita Beton and FKS Food.
Diversification Opportunities for Waskita Beton and FKS Food
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Waskita and FKS is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Waskita Beton Precast 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 Waskita Beton 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 Waskita Beton Precast 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 Waskita Beton i.e., Waskita Beton and FKS Food go up and down completely randomly.
Pair Corralation between Waskita Beton and FKS Food
Assuming the 90 days trading horizon Waskita Beton Precast is expected to under-perform the FKS Food. In addition to that, Waskita Beton is 2.41 times more volatile than FKS Food Sejahtera. It trades about -0.02 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 29, 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 |
Waskita Beton Precast vs. FKS Food Sejahtera
Performance |
Timeline |
Waskita Beton Precast |
FKS Food Sejahtera |
Waskita Beton and FKS Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Waskita Beton and FKS Food
The main advantage of trading using opposite Waskita Beton and FKS Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waskita Beton 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.Waskita Beton vs. Pacific Strategic Financial | Waskita Beton vs. Media Nusantara Citra | Waskita Beton vs. Bekasi Fajar Industrial | Waskita Beton vs. Capital Financial Indonesia |
FKS Food vs. Integra Indocabinet Tbk | FKS Food vs. Sariguna Primatirta PT | FKS Food vs. Erajaya Swasembada Tbk | FKS Food vs. Puradelta Lestari PT |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |