Correlation Between Champion Pacific and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Champion Pacific and Kokoh Inti 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 Champion Pacific and Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Pacific Indonesia and Kokoh Inti Arebama, you can compare the effects of market volatilities on Champion Pacific and Kokoh Inti 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 Champion Pacific with a short position of Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Pacific and Kokoh Inti.
Diversification Opportunities for Champion Pacific and Kokoh Inti
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champion and Kokoh is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Champion Pacific Indonesia and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama and Champion Pacific 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 Champion Pacific Indonesia are associated (or correlated) with Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of Champion Pacific i.e., Champion Pacific and Kokoh Inti go up and down completely randomly.
Pair Corralation between Champion Pacific and Kokoh Inti
Assuming the 90 days trading horizon Champion Pacific Indonesia is expected to generate 1.09 times more return on investment than Kokoh Inti. However, Champion Pacific is 1.09 times more volatile than Kokoh Inti Arebama. It trades about 0.01 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about -0.14 per unit of risk. If you would invest 50,000 in Champion Pacific Indonesia on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Champion Pacific Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Champion Pacific Indonesia vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Champion Pacific Ind |
| Kokoh Inti Arebama |
Champion Pacific and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Pacific and Kokoh Inti
The main advantage of trading using opposite Champion Pacific and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Pacific position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti's long position.| Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
| Kokoh Inti vs. Intanwijaya Internasional Tbk | Kokoh Inti vs. Champion Pacific Indonesia | Kokoh Inti vs. Mitra Pinasthika Mustika | Kokoh Inti vs. Jakarta Int Hotels |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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