Correlation Between Fortune Indonesia and Adhi Commuter
Can any of the company-specific risk be diversified away by investing in both Fortune Indonesia and Adhi Commuter 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 Fortune Indonesia and Adhi Commuter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Indonesia Tbk and Adhi Commuter Properti, you can compare the effects of market volatilities on Fortune Indonesia and Adhi Commuter 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 Fortune Indonesia with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Indonesia and Adhi Commuter.
Diversification Opportunities for Fortune Indonesia and Adhi Commuter
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortune and Adhi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Indonesia Tbk and Adhi Commuter Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adhi Commuter Properti and Fortune Indonesia 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 Fortune Indonesia Tbk are associated (or correlated) with Adhi Commuter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adhi Commuter Properti has no effect on the direction of Fortune Indonesia i.e., Fortune Indonesia and Adhi Commuter go up and down completely randomly.
Pair Corralation between Fortune Indonesia and Adhi Commuter
Assuming the 90 days trading horizon Fortune Indonesia Tbk is expected to generate 25.33 times more return on investment than Adhi Commuter. However, Fortune Indonesia is 25.33 times more volatile than Adhi Commuter Properti. It trades about 0.14 of its potential returns per unit of risk. Adhi Commuter Properti is currently generating about 0.0 per unit of risk. If you would invest 214,000 in Fortune Indonesia Tbk on September 26, 2024 and sell it today you would earn a total of 160,000 from holding Fortune Indonesia Tbk or generate 74.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fortune Indonesia Tbk vs. Adhi Commuter Properti
Performance |
Timeline |
Fortune Indonesia Tbk |
Adhi Commuter Properti |
Fortune Indonesia and Adhi Commuter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fortune Indonesia and Adhi Commuter
The main advantage of trading using opposite Fortune Indonesia and Adhi Commuter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Indonesia position performs unexpectedly, Adhi Commuter 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 Adhi Commuter will offset losses from the drop in Adhi Commuter's long position.Fortune Indonesia vs. Tower Bersama Infrastructure | Fortune Indonesia vs. Merdeka Copper Gold | Fortune Indonesia vs. Japfa Comfeed Indonesia | Fortune Indonesia vs. Indofood Cbp Sukses |
Adhi Commuter vs. Jaya Sukses Makmur | Adhi Commuter vs. Hanson International Tbk | Adhi Commuter vs. Pollux Investasi Internasional | Adhi Commuter vs. Modernland Realty Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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