Correlation Between Kabelindo Murni and Voksel Electric
Can any of the company-specific risk be diversified away by investing in both Kabelindo Murni and Voksel Electric 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 Voksel Electric 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 Voksel Electric Tbk, you can compare the effects of market volatilities on Kabelindo Murni and Voksel Electric 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 Voksel Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kabelindo Murni and Voksel Electric.
Diversification Opportunities for Kabelindo Murni and Voksel Electric
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kabelindo and Voksel is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kabelindo Murni Tbk and Voksel Electric Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voksel Electric 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 Voksel Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voksel Electric Tbk has no effect on the direction of Kabelindo Murni i.e., Kabelindo Murni and Voksel Electric go up and down completely randomly.
Pair Corralation between Kabelindo Murni and Voksel Electric
Assuming the 90 days trading horizon Kabelindo Murni Tbk is expected to generate 0.98 times more return on investment than Voksel Electric. However, Kabelindo Murni Tbk is 1.02 times less risky than Voksel Electric. It trades about 0.04 of its potential returns per unit of risk. Voksel Electric Tbk is currently generating about -0.08 per unit of risk. If you would invest 30,400 in Kabelindo Murni Tbk on August 28, 2024 and sell it today you would earn a total of 400.00 from holding Kabelindo Murni Tbk or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kabelindo Murni Tbk vs. Voksel Electric Tbk
Performance |
| Timeline |
| Kabelindo Murni Tbk |
| Voksel Electric Tbk |
Kabelindo Murni and Voksel Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kabelindo Murni and Voksel Electric
The main advantage of trading using opposite Kabelindo Murni and Voksel Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kabelindo Murni position performs unexpectedly, Voksel Electric 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 Voksel Electric will offset losses from the drop in Voksel Electric's long position.The idea behind Kabelindo Murni Tbk and Voksel Electric Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |