Correlation Between Kmi Wire and Selamat Sempurna
Can any of the company-specific risk be diversified away by investing in both Kmi Wire and Selamat Sempurna 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 Selamat Sempurna 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 Selamat Sempurna Tbk, you can compare the effects of market volatilities on Kmi Wire and Selamat Sempurna 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 Selamat Sempurna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kmi Wire and Selamat Sempurna.
Diversification Opportunities for Kmi Wire and Selamat Sempurna
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kmi and Selamat is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kmi Wire And and Selamat Sempurna Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selamat Sempurna Tbk 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 Selamat Sempurna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selamat Sempurna Tbk has no effect on the direction of Kmi Wire i.e., Kmi Wire and Selamat Sempurna go up and down completely randomly.
Pair Corralation between Kmi Wire and Selamat Sempurna
Assuming the 90 days trading horizon Kmi Wire And is expected to under-perform the Selamat Sempurna. But the stock apears to be less risky and, when comparing its historical volatility, Kmi Wire And is 1.0 times less risky than Selamat Sempurna. The stock trades about -0.14 of its potential returns per unit of risk. The Selamat Sempurna Tbk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 190,889 in Selamat Sempurna Tbk on August 28, 2024 and sell it today you would lose (389.00) from holding Selamat Sempurna Tbk or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kmi Wire And vs. Selamat Sempurna Tbk
Performance |
| Timeline |
| Kmi Wire And |
| Selamat Sempurna Tbk |
Kmi Wire and Selamat Sempurna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kmi Wire and Selamat Sempurna
The main advantage of trading using opposite Kmi Wire and Selamat Sempurna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kmi Wire position performs unexpectedly, Selamat Sempurna 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 Selamat Sempurna will offset losses from the drop in Selamat Sempurna'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 |
| Selamat Sempurna vs. Surya Citra Media | Selamat Sempurna vs. Astra Otoparts Tbk | Selamat Sempurna vs. Ultra Jaya Milk | Selamat Sempurna vs. Ramayana Lestari Sentosa |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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