Correlation Between Kmi Wire and Ricky Putra
Can any of the company-specific risk be diversified away by investing in both Kmi Wire and Ricky Putra 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 Kmi Wire and Ricky Putra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kmi Wire And and Ricky Putra Globalindo, you can compare the effects of market volatilities on Kmi Wire and Ricky Putra 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 Kmi Wire with a short position of Ricky Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kmi Wire and Ricky Putra.
Diversification Opportunities for Kmi Wire and Ricky Putra
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kmi and Ricky is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kmi Wire And and Ricky Putra Globalindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ricky Putra Globalindo and Kmi Wire 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 Kmi Wire And are associated (or correlated) with Ricky Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ricky Putra Globalindo has no effect on the direction of Kmi Wire i.e., Kmi Wire and Ricky Putra go up and down completely randomly.
Pair Corralation between Kmi Wire and Ricky Putra
Assuming the 90 days trading horizon Kmi Wire And is expected to generate 0.67 times more return on investment than Ricky Putra. However, Kmi Wire And is 1.49 times less risky than Ricky Putra. It trades about -0.14 of its potential returns per unit of risk. Ricky Putra Globalindo is currently generating about -0.15 per unit of risk. If you would invest 39,000 in Kmi Wire And on August 28, 2024 and sell it today you would lose (1,600) from holding Kmi Wire And or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kmi Wire And vs. Ricky Putra Globalindo
Performance |
| Timeline |
| Kmi Wire And |
| Ricky Putra Globalindo |
Kmi Wire and Ricky Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kmi Wire and Ricky Putra
The main advantage of trading using opposite Kmi Wire and Ricky Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kmi Wire position performs unexpectedly, Ricky Putra 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 Ricky Putra will offset losses from the drop in Ricky Putra's long position.| Kmi Wire vs. Kabelindo Murni Tbk | Kmi Wire vs. Jembo Cable | Kmi Wire vs. Gajah Tunggal Tbk | Kmi Wire vs. Indospring Tbk |
| Ricky Putra vs. Pan Brothers Tbk | Ricky Putra vs. Sunson Textile Manufacturer | Ricky Putra vs. Asia Pacific Fibers | Ricky Putra vs. Prima Alloy Steel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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