Correlation Between M Cash and Kioson Komersial
Can any of the company-specific risk be diversified away by investing in both M Cash and Kioson Komersial 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 M Cash and Kioson Komersial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M Cash Integrasi and Kioson Komersial Indonesia, you can compare the effects of market volatilities on M Cash and Kioson Komersial 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 M Cash with a short position of Kioson Komersial. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Cash and Kioson Komersial.
Diversification Opportunities for M Cash and Kioson Komersial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCAS and Kioson is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding M Cash Integrasi and Kioson Komersial Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kioson Komersial Ind and M Cash 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 M Cash Integrasi are associated (or correlated) with Kioson Komersial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kioson Komersial Ind has no effect on the direction of M Cash i.e., M Cash and Kioson Komersial go up and down completely randomly.
Pair Corralation between M Cash and Kioson Komersial
Assuming the 90 days trading horizon M Cash Integrasi is expected to under-perform the Kioson Komersial. In addition to that, M Cash is 5.19 times more volatile than Kioson Komersial Indonesia. It trades about -0.15 of its total potential returns per unit of risk. Kioson Komersial Indonesia is currently generating about -0.32 per unit of volatility. If you would invest 5,200 in Kioson Komersial Indonesia on August 27, 2024 and sell it today you would lose (200.00) from holding Kioson Komersial Indonesia or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
M Cash Integrasi vs. Kioson Komersial Indonesia
Performance |
| Timeline |
| M Cash Integrasi |
| Kioson Komersial Ind |
M Cash and Kioson Komersial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Cash and Kioson Komersial
The main advantage of trading using opposite M Cash and Kioson Komersial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Cash position performs unexpectedly, Kioson Komersial 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 Kioson Komersial will offset losses from the drop in Kioson Komersial's long position.| M Cash vs. Multipolar Tbk | M Cash vs. Astra Graphia Tbk | M Cash vs. Matahari Putra Prima | M Cash vs. Ramayana Lestari Sentosa |
| Kioson Komersial vs. Multipolar Tbk | Kioson Komersial vs. Astra Graphia Tbk | Kioson Komersial vs. Matahari Putra Prima | Kioson Komersial vs. Ramayana Lestari Sentosa |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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