Correlation Between Indo Kordsa and Personel Alih
Can any of the company-specific risk be diversified away by investing in both Indo Kordsa and Personel Alih 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 Personel Alih 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 Personel Alih Daya, you can compare the effects of market volatilities on Indo Kordsa and Personel Alih 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 Personel Alih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Kordsa and Personel Alih.
Diversification Opportunities for Indo Kordsa and Personel Alih
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indo and Personel is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Indo Kordsa Tbk and Personel Alih Daya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Personel Alih Daya 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 Personel Alih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Personel Alih Daya has no effect on the direction of Indo Kordsa i.e., Indo Kordsa and Personel Alih go up and down completely randomly.
Pair Corralation between Indo Kordsa and Personel Alih
Assuming the 90 days trading horizon Indo Kordsa Tbk is expected to generate 0.57 times more return on investment than Personel Alih. However, Indo Kordsa Tbk is 1.76 times less risky than Personel Alih. It trades about 0.02 of its potential returns per unit of risk. Personel Alih Daya is currently generating about -0.09 per unit of risk. If you would invest 583,962 in Indo Kordsa Tbk on August 30, 2024 and sell it today you would earn a total of 1,038 from holding Indo Kordsa Tbk or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Kordsa Tbk vs. Personel Alih Daya
Performance |
| Timeline |
| Indo Kordsa Tbk |
| Personel Alih Daya |
Indo Kordsa and Personel Alih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Kordsa and Personel Alih
The main advantage of trading using opposite Indo Kordsa and Personel Alih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Kordsa position performs unexpectedly, Personel Alih 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 Personel Alih will offset losses from the drop in Personel Alih's long position.| Indo Kordsa vs. Goodyear Indonesia Tbk | Indo Kordsa vs. Sepatu Bata Tbk | Indo Kordsa vs. Indospring Tbk | Indo Kordsa vs. Ever Shine Textile |
| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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