Correlation Between Karya Bersama and Indonesia Prima
Can any of the company-specific risk be diversified away by investing in both Karya Bersama and Indonesia Prima 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 Karya Bersama and Indonesia Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karya Bersama Anugerah and Indonesia Prima Property, you can compare the effects of market volatilities on Karya Bersama and Indonesia Prima 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 Karya Bersama with a short position of Indonesia Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karya Bersama and Indonesia Prima.
Diversification Opportunities for Karya Bersama and Indonesia Prima
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Karya and Indonesia is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Karya Bersama Anugerah and Indonesia Prima Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Prima Property and Karya Bersama 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 Karya Bersama Anugerah are associated (or correlated) with Indonesia Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Prima Property has no effect on the direction of Karya Bersama i.e., Karya Bersama and Indonesia Prima go up and down completely randomly.
Pair Corralation between Karya Bersama and Indonesia Prima
If you would invest 41,200 in Indonesia Prima Property on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Indonesia Prima Property or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Karya Bersama Anugerah vs. Indonesia Prima Property
Performance |
| Timeline |
| Karya Bersama Anugerah |
| Indonesia Prima Property |
Karya Bersama and Indonesia Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karya Bersama and Indonesia Prima
The main advantage of trading using opposite Karya Bersama and Indonesia Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karya Bersama position performs unexpectedly, Indonesia Prima 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 Indonesia Prima will offset losses from the drop in Indonesia Prima's long position.| Karya Bersama vs. Putra Rajawali Kencana | Karya Bersama vs. Repower Asia Indonesia | Karya Bersama vs. DMS Propertindo Tbk | Karya Bersama vs. Perintis Triniti Properti |
| Indonesia Prima vs. Pikko Land Development | Indonesia Prima vs. Suryamas Dutamakmur Tbk | Indonesia Prima vs. Ristia Bintang Mahkotasejati | Indonesia Prima vs. Pudjiadi Prestige 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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