Correlation Between Krakatau Steel and Intermedia Capital
Can any of the company-specific risk be diversified away by investing in both Krakatau Steel and Intermedia Capital 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 Krakatau Steel and Intermedia Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Krakatau Steel Persero and Intermedia Capital Tbk, you can compare the effects of market volatilities on Krakatau Steel and Intermedia Capital 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 Krakatau Steel with a short position of Intermedia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Krakatau Steel and Intermedia Capital.
Diversification Opportunities for Krakatau Steel and Intermedia Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Krakatau and Intermedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Krakatau Steel Persero and Intermedia Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedia Capital Tbk and Krakatau Steel 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 Krakatau Steel Persero are associated (or correlated) with Intermedia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedia Capital Tbk has no effect on the direction of Krakatau Steel i.e., Krakatau Steel and Intermedia Capital go up and down completely randomly.
Pair Corralation between Krakatau Steel and Intermedia Capital
If you would invest 1,000.00 in Intermedia Capital Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Intermedia Capital Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Krakatau Steel Persero vs. Intermedia Capital Tbk
Performance |
| Timeline |
| Krakatau Steel Persero |
| Intermedia Capital Tbk |
Krakatau Steel and Intermedia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Krakatau Steel and Intermedia Capital
The main advantage of trading using opposite Krakatau Steel and Intermedia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Krakatau Steel position performs unexpectedly, Intermedia Capital 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 Intermedia Capital will offset losses from the drop in Intermedia Capital's long position.| Krakatau Steel vs. Perusahaan Gas Negara | Krakatau Steel vs. Telkom Indonesia Tbk | Krakatau Steel vs. Mitra Pinasthika Mustika | Krakatau Steel vs. Jakarta Int Hotels |
| Intermedia Capital vs. Visi Media Asia | Intermedia Capital vs. Mnc Sky Vision | Intermedia Capital vs. Mahaka Radio Integra | Intermedia Capital vs. Mnc Land 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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