Correlation Between Kirana Megatara and Acset Indonusa
Can any of the company-specific risk be diversified away by investing in both Kirana Megatara and Acset Indonusa 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 Kirana Megatara and Acset Indonusa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kirana Megatara Tbk and Acset Indonusa Tbk, you can compare the effects of market volatilities on Kirana Megatara and Acset Indonusa 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 Kirana Megatara with a short position of Acset Indonusa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kirana Megatara and Acset Indonusa.
Diversification Opportunities for Kirana Megatara and Acset Indonusa
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kirana and Acset is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kirana Megatara Tbk and Acset Indonusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acset Indonusa Tbk and Kirana Megatara 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 Kirana Megatara Tbk are associated (or correlated) with Acset Indonusa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acset Indonusa Tbk has no effect on the direction of Kirana Megatara i.e., Kirana Megatara and Acset Indonusa go up and down completely randomly.
Pair Corralation between Kirana Megatara and Acset Indonusa
Assuming the 90 days trading horizon Kirana Megatara Tbk is expected to under-perform the Acset Indonusa. In addition to that, Kirana Megatara is 1.56 times more volatile than Acset Indonusa Tbk. It trades about -0.15 of its total potential returns per unit of risk. Acset Indonusa Tbk is currently generating about -0.15 per unit of volatility. If you would invest 10,900 in Acset Indonusa Tbk on August 28, 2024 and sell it today you would lose (600.00) from holding Acset Indonusa Tbk or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kirana Megatara Tbk vs. Acset Indonusa Tbk
Performance |
| Timeline |
| Kirana Megatara Tbk |
| Acset Indonusa Tbk |
Kirana Megatara and Acset Indonusa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kirana Megatara and Acset Indonusa
The main advantage of trading using opposite Kirana Megatara and Acset Indonusa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kirana Megatara position performs unexpectedly, Acset Indonusa 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 Acset Indonusa will offset losses from the drop in Acset Indonusa's long position.| Kirana Megatara vs. Emdeki Utama Tbk | Kirana Megatara vs. Panca Budi Idaman | Kirana Megatara vs. Mark Dynamics Indonesia | Kirana Megatara vs. Map Boga Adiperkasa |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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