Correlation Between Perdana Bangun and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Perdana Bangun and Kokoh Inti 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 Perdana Bangun and Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perdana Bangun Pusaka and Kokoh Inti Arebama, you can compare the effects of market volatilities on Perdana Bangun and Kokoh Inti 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 Perdana Bangun with a short position of Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perdana Bangun and Kokoh Inti.
Diversification Opportunities for Perdana Bangun and Kokoh Inti
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perdana and Kokoh is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Perdana Bangun Pusaka and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama and Perdana Bangun 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 Perdana Bangun Pusaka are associated (or correlated) with Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of Perdana Bangun i.e., Perdana Bangun and Kokoh Inti go up and down completely randomly.
Pair Corralation between Perdana Bangun and Kokoh Inti
Assuming the 90 days trading horizon Perdana Bangun Pusaka is expected to generate 6.49 times more return on investment than Kokoh Inti. However, Perdana Bangun is 6.49 times more volatile than Kokoh Inti Arebama. It trades about 0.29 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about -0.13 per unit of risk. If you would invest 87,000 in Perdana Bangun Pusaka on August 29, 2024 and sell it today you would earn a total of 75,000 from holding Perdana Bangun Pusaka or generate 86.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Perdana Bangun Pusaka vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Perdana Bangun Pusaka |
| Kokoh Inti Arebama |
Perdana Bangun and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perdana Bangun and Kokoh Inti
The main advantage of trading using opposite Perdana Bangun and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perdana Bangun position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti's long position.| Perdana Bangun vs. Inter Delta Tbk | Perdana Bangun vs. Jakarta Setiabudi Internasional | Perdana Bangun vs. Modern Internasional Tbk | Perdana Bangun vs. Multi Indocitra Tbk |
| Kokoh Inti vs. Multi Indocitra Tbk | Kokoh Inti vs. Jasuindo Tiga Perkasa | Kokoh Inti vs. Perdana Bangun Pusaka | Kokoh Inti vs. Star Pacific 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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