Correlation Between Kabelindo Murni and Trias Sentosa
Can any of the company-specific risk be diversified away by investing in both Kabelindo Murni and Trias Sentosa 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 Trias Sentosa 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 Trias Sentosa Tbk, you can compare the effects of market volatilities on Kabelindo Murni and Trias Sentosa 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 Trias Sentosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kabelindo Murni and Trias Sentosa.
Diversification Opportunities for Kabelindo Murni and Trias Sentosa
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kabelindo and Trias is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Kabelindo Murni Tbk and Trias Sentosa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trias Sentosa Tbk 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 Trias Sentosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trias Sentosa Tbk has no effect on the direction of Kabelindo Murni i.e., Kabelindo Murni and Trias Sentosa go up and down completely randomly.
Pair Corralation between Kabelindo Murni and Trias Sentosa
Assuming the 90 days trading horizon Kabelindo Murni is expected to generate 1.48 times less return on investment than Trias Sentosa. In addition to that, Kabelindo Murni is 1.94 times more volatile than Trias Sentosa Tbk. It trades about 0.01 of its total potential returns per unit of risk. Trias Sentosa Tbk is currently generating about 0.02 per unit of volatility. If you would invest 49,800 in Trias Sentosa Tbk on August 26, 2024 and sell it today you would earn a total of 200.00 from holding Trias Sentosa Tbk or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kabelindo Murni Tbk vs. Trias Sentosa Tbk
Performance |
| Timeline |
| Kabelindo Murni Tbk |
| Trias Sentosa Tbk |
Kabelindo Murni and Trias Sentosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kabelindo Murni and Trias Sentosa
The main advantage of trading using opposite Kabelindo Murni and Trias Sentosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kabelindo Murni position performs unexpectedly, Trias Sentosa 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 Trias Sentosa will offset losses from the drop in Trias Sentosa's long position.| Kabelindo Murni vs. Rukun Raharja Tbk | Kabelindo Murni vs. PT Temas Tbk | Kabelindo Murni vs. Weha Transportasi Indonesia |
| Trias Sentosa vs. Kedaung Indah Can | Trias Sentosa vs. Langgeng Makmur Industri | Trias Sentosa vs. Kabelindo Murni Tbk | Trias Sentosa vs. Mustika Ratu 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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