Correlation Between Kabelindo Murni and Intanwijaya Internasional
Can any of the company-specific risk be diversified away by investing in both Kabelindo Murni and Intanwijaya Internasional 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 Kabelindo Murni and Intanwijaya Internasional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kabelindo Murni Tbk and Intanwijaya Internasional Tbk, you can compare the effects of market volatilities on Kabelindo Murni and Intanwijaya Internasional 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 Kabelindo Murni with a short position of Intanwijaya Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kabelindo Murni and Intanwijaya Internasional.
Diversification Opportunities for Kabelindo Murni and Intanwijaya Internasional
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kabelindo and Intanwijaya is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kabelindo Murni Tbk and Intanwijaya Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intanwijaya Internasional and Kabelindo Murni 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 Kabelindo Murni Tbk are associated (or correlated) with Intanwijaya Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intanwijaya Internasional has no effect on the direction of Kabelindo Murni i.e., Kabelindo Murni and Intanwijaya Internasional go up and down completely randomly.
Pair Corralation between Kabelindo Murni and Intanwijaya Internasional
Assuming the 90 days trading horizon Kabelindo Murni Tbk is expected to generate 1.06 times more return on investment than Intanwijaya Internasional. However, Kabelindo Murni is 1.06 times more volatile than Intanwijaya Internasional Tbk. It trades about -0.05 of its potential returns per unit of risk. Intanwijaya Internasional Tbk is currently generating about -0.12 per unit of risk. If you would invest 31,200 in Kabelindo Murni Tbk on August 30, 2024 and sell it today you would lose (600.00) from holding Kabelindo Murni Tbk or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kabelindo Murni Tbk vs. Intanwijaya Internasional Tbk
Performance |
| Timeline |
| Kabelindo Murni Tbk |
| Intanwijaya Internasional |
Kabelindo Murni and Intanwijaya Internasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kabelindo Murni and Intanwijaya Internasional
The main advantage of trading using opposite Kabelindo Murni and Intanwijaya Internasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kabelindo Murni position performs unexpectedly, Intanwijaya Internasional 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 Intanwijaya Internasional will offset losses from the drop in Intanwijaya Internasional's long position.| Kabelindo Murni vs. Kmi Wire And | Kabelindo Murni vs. Jembo Cable | Kabelindo Murni vs. Sumi Indo Kabel | Kabelindo Murni vs. Voksel Electric Tbk |
| Intanwijaya Internasional vs. Barito Pacific Tbk | Intanwijaya Internasional vs. Charoen Pokphand Indonesia | Intanwijaya Internasional vs. Indocement Tunggal Prakarsa |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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