Correlation Between Kencana Energi and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Kencana Energi and Sinergi Inti 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 Kencana Energi and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kencana Energi Lestari and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Kencana Energi and Sinergi Inti 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 Kencana Energi with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kencana Energi and Sinergi Inti.
Diversification Opportunities for Kencana Energi and Sinergi Inti
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kencana and Sinergi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kencana Energi Lestari and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Kencana Energi 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 Kencana Energi Lestari are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Kencana Energi i.e., Kencana Energi and Sinergi Inti go up and down completely randomly.
Pair Corralation between Kencana Energi and Sinergi Inti
Assuming the 90 days trading horizon Kencana Energi Lestari is expected to generate 0.55 times more return on investment than Sinergi Inti. However, Kencana Energi Lestari is 1.81 times less risky than Sinergi Inti. It trades about -0.04 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.06 per unit of risk. If you would invest 64,500 in Kencana Energi Lestari on September 14, 2024 and sell it today you would lose (1,000.00) from holding Kencana Energi Lestari or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kencana Energi Lestari vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Kencana Energi Lestari |
| Sinergi Inti Plastindo |
Kencana Energi and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kencana Energi and Sinergi Inti
The main advantage of trading using opposite Kencana Energi and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kencana Energi position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Kencana Energi vs. PT Indonesia Kendaraan | Kencana Energi vs. Cikarang Listrindo Tbk | Kencana Energi vs. Jasa Armada Indonesia | Kencana Energi vs. Pelita Samudera Shipping |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |