Correlation Between Kabelindo Murni and Pabrik Kertas
Can any of the company-specific risk be diversified away by investing in both Kabelindo Murni and Pabrik Kertas 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 Pabrik Kertas 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 Pabrik Kertas Tjiwi, you can compare the effects of market volatilities on Kabelindo Murni and Pabrik Kertas 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 Pabrik Kertas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kabelindo Murni and Pabrik Kertas.
Diversification Opportunities for Kabelindo Murni and Pabrik Kertas
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kabelindo and Pabrik is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kabelindo Murni Tbk and Pabrik Kertas Tjiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pabrik Kertas Tjiwi 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 Pabrik Kertas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pabrik Kertas Tjiwi has no effect on the direction of Kabelindo Murni i.e., Kabelindo Murni and Pabrik Kertas go up and down completely randomly.
Pair Corralation between Kabelindo Murni and Pabrik Kertas
Assuming the 90 days trading horizon Kabelindo Murni Tbk is expected to generate 0.86 times more return on investment than Pabrik Kertas. However, Kabelindo Murni Tbk is 1.16 times less risky than Pabrik Kertas. It trades about 0.02 of its potential returns per unit of risk. Pabrik Kertas Tjiwi is currently generating about 0.0 per unit of risk. If you would invest 28,552 in Kabelindo Murni Tbk on September 12, 2024 and sell it today you would earn a total of 1,048 from holding Kabelindo Murni Tbk or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kabelindo Murni Tbk vs. Pabrik Kertas Tjiwi
Performance |
| Timeline |
| Kabelindo Murni Tbk |
| Pabrik Kertas Tjiwi |
Kabelindo Murni and Pabrik Kertas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kabelindo Murni and Pabrik Kertas
The main advantage of trading using opposite Kabelindo Murni and Pabrik Kertas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kabelindo Murni position performs unexpectedly, Pabrik Kertas 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 Pabrik Kertas will offset losses from the drop in Pabrik Kertas' 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 |
| Pabrik Kertas vs. Kedaung Indah Can | Pabrik Kertas vs. Kabelindo Murni Tbk | Pabrik Kertas vs. Champion Pacific Indonesia | Pabrik Kertas vs. Bhuwanatala Indah Permai |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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