Correlation Between Inocycle Technology and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and PT Kusuma 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 Inocycle Technology and PT Kusuma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inocycle Technology Tbk and PT Kusuma Kemindo, you can compare the effects of market volatilities on Inocycle Technology and PT Kusuma 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 Inocycle Technology with a short position of PT Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and PT Kusuma.
Diversification Opportunities for Inocycle Technology and PT Kusuma
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inocycle and KKES is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo and Inocycle Technology 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 Inocycle Technology Tbk are associated (or correlated) with PT Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and PT Kusuma go up and down completely randomly.
Pair Corralation between Inocycle Technology and PT Kusuma
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to generate 1.04 times more return on investment than PT Kusuma. However, Inocycle Technology is 1.04 times more volatile than PT Kusuma Kemindo. It trades about 0.0 of its potential returns per unit of risk. PT Kusuma Kemindo is currently generating about -0.07 per unit of risk. If you would invest 12,900 in Inocycle Technology Tbk on September 12, 2024 and sell it today you would lose (3,100) from holding Inocycle Technology Tbk or give up 24.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. PT Kusuma Kemindo
Performance |
| Timeline |
| Inocycle Technology Tbk |
| PT Kusuma Kemindo |
Inocycle Technology and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and PT Kusuma
The main advantage of trading using opposite Inocycle Technology and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, PT Kusuma 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 PT Kusuma will offset losses from the drop in PT Kusuma's long position.| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Sinergi Inti Plastindo |
| PT Kusuma vs. PT Hetzer Medical | PT Kusuma vs. Bangun Karya Perkasa | PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Sari Kreasi |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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