Correlation Between Kokoh Inti and Multi Indocitra
Can any of the company-specific risk be diversified away by investing in both Kokoh Inti and Multi Indocitra 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 Kokoh Inti and Multi Indocitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kokoh Inti Arebama and Multi Indocitra Tbk, you can compare the effects of market volatilities on Kokoh Inti and Multi Indocitra 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 Kokoh Inti with a short position of Multi Indocitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kokoh Inti and Multi Indocitra.
Diversification Opportunities for Kokoh Inti and Multi Indocitra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kokoh and Multi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kokoh Inti Arebama and Multi Indocitra Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Indocitra Tbk and Kokoh Inti 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 Kokoh Inti Arebama are associated (or correlated) with Multi Indocitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Indocitra Tbk has no effect on the direction of Kokoh Inti i.e., Kokoh Inti and Multi Indocitra go up and down completely randomly.
Pair Corralation between Kokoh Inti and Multi Indocitra
Assuming the 90 days trading horizon Kokoh Inti Arebama is expected to under-perform the Multi Indocitra. In addition to that, Kokoh Inti is 1.3 times more volatile than Multi Indocitra Tbk. It trades about -0.09 of its total potential returns per unit of risk. Multi Indocitra Tbk is currently generating about 0.06 per unit of volatility. If you would invest 49,400 in Multi Indocitra Tbk on August 29, 2024 and sell it today you would earn a total of 1,100 from holding Multi Indocitra Tbk or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kokoh Inti Arebama vs. Multi Indocitra Tbk
Performance |
| Timeline |
| Kokoh Inti Arebama |
| Multi Indocitra Tbk |
Kokoh Inti and Multi Indocitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kokoh Inti and Multi Indocitra
The main advantage of trading using opposite Kokoh Inti and Multi Indocitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kokoh Inti position performs unexpectedly, Multi Indocitra 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 Multi Indocitra will offset losses from the drop in Multi Indocitra's long position.| Kokoh Inti vs. Multi Indocitra Tbk | Kokoh Inti vs. Jasuindo Tiga Perkasa | Kokoh Inti vs. Perdana Bangun Pusaka | Kokoh Inti vs. Star Pacific Tbk |
| Multi Indocitra vs. Lautan Luas Tbk | Multi Indocitra vs. Pembangunan Jaya Ancol | Multi Indocitra vs. Modern Internasional Tbk | Multi Indocitra vs. Mustika Ratu Tbk |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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