Correlation Between Kioson Komersial and Indointernet Tbk
Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and Indointernet Tbk 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 Kioson Komersial and Indointernet Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kioson Komersial Indonesia and Indointernet Tbk PT, you can compare the effects of market volatilities on Kioson Komersial and Indointernet Tbk 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 Kioson Komersial with a short position of Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and Indointernet Tbk.
Diversification Opportunities for Kioson Komersial and Indointernet Tbk
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kioson and Indointernet is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet Tbk and Kioson Komersial 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 Kioson Komersial Indonesia are associated (or correlated) with Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and Indointernet Tbk go up and down completely randomly.
Pair Corralation between Kioson Komersial and Indointernet Tbk
Assuming the 90 days trading horizon Kioson Komersial is expected to generate 1.43 times less return on investment than Indointernet Tbk. In addition to that, Kioson Komersial is 1.11 times more volatile than Indointernet Tbk PT. It trades about 0.02 of its total potential returns per unit of risk. Indointernet Tbk PT is currently generating about 0.03 per unit of volatility. If you would invest 384,000 in Indointernet Tbk PT on September 2, 2024 and sell it today you would earn a total of 13,000 from holding Indointernet Tbk PT or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kioson Komersial Indonesia vs. Indointernet Tbk PT
Performance |
| Timeline |
| Kioson Komersial Ind |
| Indointernet Tbk |
Kioson Komersial and Indointernet Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kioson Komersial and Indointernet Tbk
The main advantage of trading using opposite Kioson Komersial and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, Indointernet Tbk 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk's long position.| Kioson Komersial vs. M Cash Integrasi | Kioson Komersial vs. NFC Indonesia PT | Kioson Komersial vs. Multipolar Technology Tbk | Kioson Komersial vs. Digital Mediatama Maxima |
| Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Digital Mediatama Maxima | Indointernet Tbk vs. NFC Indonesia PT | Indointernet Tbk vs. Kioson Komersial Indonesia |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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