Correlation Between Indo Kordsa and Cashlez Worldwide
Can any of the company-specific risk be diversified away by investing in both Indo Kordsa and Cashlez Worldwide 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 Indo Kordsa and Cashlez Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Kordsa Tbk and Cashlez Worldwide Indonesia, you can compare the effects of market volatilities on Indo Kordsa and Cashlez Worldwide 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 Indo Kordsa with a short position of Cashlez Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Kordsa and Cashlez Worldwide.
Diversification Opportunities for Indo Kordsa and Cashlez Worldwide
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and Cashlez is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Indo Kordsa Tbk and Cashlez Worldwide Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cashlez Worldwide and Indo Kordsa 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 Indo Kordsa Tbk are associated (or correlated) with Cashlez Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cashlez Worldwide has no effect on the direction of Indo Kordsa i.e., Indo Kordsa and Cashlez Worldwide go up and down completely randomly.
Pair Corralation between Indo Kordsa and Cashlez Worldwide
Assuming the 90 days trading horizon Indo Kordsa Tbk is expected to under-perform the Cashlez Worldwide. But the stock apears to be less risky and, when comparing its historical volatility, Indo Kordsa Tbk is 2.23 times less risky than Cashlez Worldwide. The stock trades about -0.01 of its potential returns per unit of risk. The Cashlez Worldwide Indonesia is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8,000 in Cashlez Worldwide Indonesia on September 12, 2024 and sell it today you would lose (900.00) from holding Cashlez Worldwide Indonesia or give up 11.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Kordsa Tbk vs. Cashlez Worldwide Indonesia
Performance |
| Timeline |
| Indo Kordsa Tbk |
| Cashlez Worldwide |
Indo Kordsa and Cashlez Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Kordsa and Cashlez Worldwide
The main advantage of trading using opposite Indo Kordsa and Cashlez Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Kordsa position performs unexpectedly, Cashlez Worldwide 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 Cashlez Worldwide will offset losses from the drop in Cashlez Worldwide's long position.| Indo Kordsa vs. Pembangunan Graha Lestari | Indo Kordsa vs. Pembangunan Jaya Ancol | Indo Kordsa vs. Hotel Sahid Jaya | Indo Kordsa vs. Mitrabara Adiperdana PT |
| Cashlez Worldwide vs. Digital Mediatama Maxima | Cashlez Worldwide vs. Hensel Davest Indonesia | Cashlez Worldwide vs. Kioson Komersial Indonesia | Cashlez Worldwide vs. Anabatic Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |