Correlation Between Kioson Komersial and M Cash
Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and M Cash 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 M Cash 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 M Cash Integrasi, you can compare the effects of market volatilities on Kioson Komersial and M Cash 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 M Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and M Cash.
Diversification Opportunities for Kioson Komersial and M Cash
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kioson and MCAS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and M Cash Integrasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Cash Integrasi 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 M Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Cash Integrasi has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and M Cash go up and down completely randomly.
Pair Corralation between Kioson Komersial and M Cash
Assuming the 90 days trading horizon Kioson Komersial Indonesia is expected to generate 0.75 times more return on investment than M Cash. However, Kioson Komersial Indonesia is 1.34 times less risky than M Cash. It trades about -0.12 of its potential returns per unit of risk. M Cash Integrasi is currently generating about -0.09 per unit of risk. If you would invest 33,200 in Kioson Komersial Indonesia on August 24, 2024 and sell it today you would lose (28,200) from holding Kioson Komersial Indonesia or give up 84.94% 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. M Cash Integrasi
Performance |
| Timeline |
| Kioson Komersial Ind |
| M Cash Integrasi |
Kioson Komersial and M Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kioson Komersial and M Cash
The main advantage of trading using opposite Kioson Komersial and M Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, M Cash 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 M Cash will offset losses from the drop in M Cash'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 |
| M Cash vs. Multipolar Tbk | M Cash vs. Astra Graphia Tbk | M Cash vs. Matahari Putra Prima | M Cash vs. Ramayana Lestari Sentosa |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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