Correlation Between Ictsi Jasa and Kabelindo Murni
Can any of the company-specific risk be diversified away by investing in both Ictsi Jasa 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 Ictsi Jasa and Kabelindo Murni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ictsi Jasa Prima and Kabelindo Murni Tbk, you can compare the effects of market volatilities on Ictsi Jasa 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 Ictsi Jasa with a short position of Kabelindo Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ictsi Jasa and Kabelindo Murni.
Diversification Opportunities for Ictsi Jasa and Kabelindo Murni
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ictsi and Kabelindo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ictsi Jasa Prima 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 Ictsi Jasa 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 Ictsi Jasa Prima 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 Ictsi Jasa i.e., Ictsi Jasa and Kabelindo Murni go up and down completely randomly.
Pair Corralation between Ictsi Jasa and Kabelindo Murni
Assuming the 90 days trading horizon Ictsi Jasa Prima is expected to generate 4.63 times more return on investment than Kabelindo Murni. However, Ictsi Jasa is 4.63 times more volatile than Kabelindo Murni Tbk. It trades about 0.44 of its potential returns per unit of risk. Kabelindo Murni Tbk is currently generating about -0.02 per unit of risk. If you would invest 163,000 in Ictsi Jasa Prima on August 30, 2024 and sell it today you would earn a total of 377,000 from holding Ictsi Jasa Prima or generate 231.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ictsi Jasa Prima vs. Kabelindo Murni Tbk
Performance |
| Timeline |
| Ictsi Jasa Prima |
| Kabelindo Murni Tbk |
Ictsi Jasa and Kabelindo Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ictsi Jasa and Kabelindo Murni
The main advantage of trading using opposite Ictsi Jasa and Kabelindo Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ictsi Jasa 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.| Ictsi Jasa vs. Kabelindo Murni Tbk | Ictsi Jasa vs. Jembo Cable | Ictsi Jasa vs. Kedaung Indah Can | Ictsi Jasa vs. Kedawung Setia Industrial |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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