Correlation Between Kioson Komersial and Wir Asia
Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and Wir Asia 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 Wir Asia 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 Wir Asia Tbk, you can compare the effects of market volatilities on Kioson Komersial and Wir Asia 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 Wir Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and Wir Asia.
Diversification Opportunities for Kioson Komersial and Wir Asia
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kioson and Wir is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and Wir Asia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wir Asia 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 Wir Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wir Asia Tbk has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and Wir Asia go up and down completely randomly.
Pair Corralation between Kioson Komersial and Wir Asia
Assuming the 90 days trading horizon Kioson Komersial is expected to generate 2.73 times less return on investment than Wir Asia. But when comparing it to its historical volatility, Kioson Komersial Indonesia is 1.06 times less risky than Wir Asia. It trades about 0.02 of its potential returns per unit of risk. Wir Asia Tbk is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,200 in Wir Asia Tbk on September 2, 2024 and sell it today you would earn a total of 700.00 from holding Wir Asia Tbk or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kioson Komersial Indonesia vs. Wir Asia Tbk
Performance |
| Timeline |
| Kioson Komersial Ind |
| Wir Asia Tbk |
Kioson Komersial and Wir Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kioson Komersial and Wir Asia
The main advantage of trading using opposite Kioson Komersial and Wir Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, Wir Asia 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 Wir Asia will offset losses from the drop in Wir Asia'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 |
| Wir Asia vs. GoTo Gojek Tokopedia | Wir Asia vs. Adaro Minerals Indonesia | Wir Asia vs. PT Bukalapak | Wir Asia vs. Bank Artos 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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