Correlation Between Kresna Graha and Panca Global
Can any of the company-specific risk be diversified away by investing in both Kresna Graha and Panca Global 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 Kresna Graha and Panca Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kresna Graha Investama and Panca Global Securities, you can compare the effects of market volatilities on Kresna Graha and Panca Global 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 Kresna Graha with a short position of Panca Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kresna Graha and Panca Global.
Diversification Opportunities for Kresna Graha and Panca Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kresna and Panca is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kresna Graha Investama and Panca Global Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panca Global Securities and Kresna Graha 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 Kresna Graha Investama are associated (or correlated) with Panca Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panca Global Securities has no effect on the direction of Kresna Graha i.e., Kresna Graha and Panca Global go up and down completely randomly.
Pair Corralation between Kresna Graha and Panca Global
Assuming the 90 days trading horizon Kresna Graha Investama is expected to under-perform the Panca Global. In addition to that, Kresna Graha is 3.03 times more volatile than Panca Global Securities. It trades about -0.11 of its total potential returns per unit of risk. Panca Global Securities is currently generating about -0.14 per unit of volatility. If you would invest 12,100 in Panca Global Securities on August 31, 2024 and sell it today you would lose (1,100) from holding Panca Global Securities or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kresna Graha Investama vs. Panca Global Securities
Performance |
| Timeline |
| Kresna Graha Investama |
| Panca Global Securities |
Kresna Graha and Panca Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kresna Graha and Panca Global
The main advantage of trading using opposite Kresna Graha and Panca Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kresna Graha position performs unexpectedly, Panca Global 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 Panca Global will offset losses from the drop in Panca Global's long position.| Kresna Graha vs. Mnc Land Tbk | Kresna Graha vs. Nusantara Infrastructure Tbk | Kresna Graha vs. Lenox Pasifik Investama | Kresna Graha vs. Mandala Multifinance Tbk |
| Panca Global vs. Panin Sekuritas Tbk | Panca Global vs. Reliance Securities Tbk | Panca Global vs. Mandala Multifinance Tbk | Panca Global vs. Paninvest 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |