Correlation Between Indospring Tbk and Kabelindo Murni
Can any of the company-specific risk be diversified away by investing in both Indospring Tbk and Kabelindo Murni 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 Indospring Tbk and Kabelindo Murni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indospring Tbk and Kabelindo Murni Tbk, you can compare the effects of market volatilities on Indospring Tbk and Kabelindo Murni 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 Indospring Tbk with a short position of Kabelindo Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indospring Tbk and Kabelindo Murni.
Diversification Opportunities for Indospring Tbk and Kabelindo Murni
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indospring and Kabelindo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Indospring Tbk and Kabelindo Murni Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kabelindo Murni Tbk and Indospring Tbk 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 Indospring Tbk are associated (or correlated) with Kabelindo Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kabelindo Murni Tbk has no effect on the direction of Indospring Tbk i.e., Indospring Tbk and Kabelindo Murni go up and down completely randomly.
Pair Corralation between Indospring Tbk and Kabelindo Murni
Assuming the 90 days trading horizon Indospring Tbk is expected to generate 1.99 times less return on investment than Kabelindo Murni. In addition to that, Indospring Tbk is 1.25 times more volatile than Kabelindo Murni Tbk. It trades about 0.03 of its total potential returns per unit of risk. Kabelindo Murni Tbk is currently generating about 0.08 per unit of volatility. If you would invest 23,922 in Kabelindo Murni Tbk on August 30, 2024 and sell it today you would earn a total of 6,278 from holding Kabelindo Murni Tbk or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indospring Tbk vs. Kabelindo Murni Tbk
Performance |
| Timeline |
| Indospring Tbk |
| Kabelindo Murni Tbk |
Indospring Tbk and Kabelindo Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indospring Tbk and Kabelindo Murni
The main advantage of trading using opposite Indospring Tbk and Kabelindo Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indospring Tbk position performs unexpectedly, Kabelindo Murni 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 Kabelindo Murni will offset losses from the drop in Kabelindo Murni's long position.| Indospring Tbk vs. Indomobil Sukses Internasional | Indospring Tbk vs. Goodyear Indonesia Tbk | Indospring Tbk vs. Indorama Synthetics Tbk | Indospring Tbk vs. Astra Otoparts Tbk |
| Kabelindo Murni vs. Kmi Wire And | Kabelindo Murni vs. Jembo Cable | Kabelindo Murni vs. Sumi Indo Kabel | Kabelindo Murni vs. Voksel Electric 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |