Correlation Between PT Gudang and Kenon Holdings
Can any of the company-specific risk be diversified away by investing in both PT Gudang and Kenon Holdings 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 PT Gudang and Kenon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Gudang Garam and Kenon Holdings, you can compare the effects of market volatilities on PT Gudang and Kenon Holdings 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 PT Gudang with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Gudang and Kenon Holdings.
Diversification Opportunities for PT Gudang and Kenon Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GGNPF and Kenon is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding PT Gudang Garam and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and PT Gudang 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 PT Gudang Garam are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of PT Gudang i.e., PT Gudang and Kenon Holdings go up and down completely randomly.
Pair Corralation between PT Gudang and Kenon Holdings
Assuming the 90 days horizon PT Gudang Garam is expected to under-perform the Kenon Holdings. In addition to that, PT Gudang is 1.91 times more volatile than Kenon Holdings. It trades about -0.09 of its total potential returns per unit of risk. Kenon Holdings is currently generating about 0.09 per unit of volatility. If you would invest 2,454 in Kenon Holdings on January 7, 2025 and sell it today you would earn a total of 677.00 from holding Kenon Holdings or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
PT Gudang Garam vs. Kenon Holdings
Performance |
| Timeline |
| PT Gudang Garam |
| Kenon Holdings |
PT Gudang and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Gudang and Kenon Holdings
The main advantage of trading using opposite PT Gudang and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Gudang position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| PT Gudang vs. Playtika Holding Corp | PT Gudang vs. China Aircraft Leasing | PT Gudang vs. Air Lease | PT Gudang vs. Roblox Corp |
| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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