Correlation Between Kioson Komersial and Armada Berjaya
Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and Armada Berjaya 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 Armada Berjaya 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 Armada Berjaya Trans, you can compare the effects of market volatilities on Kioson Komersial and Armada Berjaya 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 Armada Berjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and Armada Berjaya.
Diversification Opportunities for Kioson Komersial and Armada Berjaya
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kioson and Armada is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and Armada Berjaya Trans in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Berjaya Trans 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 Armada Berjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Berjaya Trans has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and Armada Berjaya go up and down completely randomly.
Pair Corralation between Kioson Komersial and Armada Berjaya
Assuming the 90 days trading horizon Kioson Komersial Indonesia is expected to generate 0.36 times more return on investment than Armada Berjaya. However, Kioson Komersial Indonesia is 2.8 times less risky than Armada Berjaya. It trades about -0.07 of its potential returns per unit of risk. Armada Berjaya Trans is currently generating about -0.23 per unit of risk. If you would invest 5,100 in Kioson Komersial Indonesia on August 24, 2024 and sell it today you would lose (100.00) from holding Kioson Komersial Indonesia or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kioson Komersial Indonesia vs. Armada Berjaya Trans
Performance |
| Timeline |
| Kioson Komersial Ind |
| Armada Berjaya Trans |
Kioson Komersial and Armada Berjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kioson Komersial and Armada Berjaya
The main advantage of trading using opposite Kioson Komersial and Armada Berjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, Armada Berjaya 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 Armada Berjaya will offset losses from the drop in Armada Berjaya'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 |
| Armada Berjaya vs. Guna Timur Raya | Armada Berjaya vs. Sinergi Inti Plastindo | Armada Berjaya vs. Hartadinata Abadi Tbk | Armada Berjaya vs. Weha Transportasi 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 Stocks Directory module to find actively traded stocks across global markets.
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