Correlation Between KENEDIX OFFICE and PT Barito
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and PT Barito 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 KENEDIX OFFICE and PT Barito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and PT Barito Pacific, you can compare the effects of market volatilities on KENEDIX OFFICE and PT Barito 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 KENEDIX OFFICE with a short position of PT Barito. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and PT Barito.
Diversification Opportunities for KENEDIX OFFICE and PT Barito
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KENEDIX and OB8 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and PT Barito Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Barito Pacific and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with PT Barito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Barito Pacific has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and PT Barito go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and PT Barito
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to generate 0.19 times more return on investment than PT Barito. However, KENEDIX OFFICE INV is 5.35 times less risky than PT Barito. It trades about 0.12 of its potential returns per unit of risk. PT Barito Pacific is currently generating about -0.05 per unit of risk. If you would invest 87,500 in KENEDIX OFFICE INV on August 28, 2024 and sell it today you would earn a total of 3,500 from holding KENEDIX OFFICE INV or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. PT Barito Pacific
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| PT Barito Pacific |
KENEDIX OFFICE and PT Barito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and PT Barito
The main advantage of trading using opposite KENEDIX OFFICE and PT Barito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, PT Barito 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 Barito will offset losses from the drop in PT Barito's long position.| KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc | KENEDIX OFFICE vs. Apple Inc |
| PT Barito vs. Superior Plus Corp | PT Barito vs. NMI Holdings | PT Barito vs. Origin Agritech | PT Barito vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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