Correlation Between PT Techno9 and PT Kusuma
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and PT Kusuma 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 PT Techno9 and PT Kusuma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and PT Kusuma Kemindo, you can compare the effects of market volatilities on PT Techno9 and PT Kusuma 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 PT Techno9 with a short position of PT Kusuma. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and PT Kusuma.
Diversification Opportunities for PT Techno9 and PT Kusuma
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NINE and KKES is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and PT Kusuma Kemindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kusuma Kemindo and PT Techno9 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 PT Techno9 Indonesia are associated (or correlated) with PT Kusuma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kusuma Kemindo has no effect on the direction of PT Techno9 i.e., PT Techno9 and PT Kusuma go up and down completely randomly.
Pair Corralation between PT Techno9 and PT Kusuma
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 2.03 times more return on investment than PT Kusuma. However, PT Techno9 is 2.03 times more volatile than PT Kusuma Kemindo. It trades about 0.03 of its potential returns per unit of risk. PT Kusuma Kemindo is currently generating about -0.09 per unit of risk. If you would invest 4,700 in PT Techno9 Indonesia on August 30, 2024 and sell it today you would lose (1,100) from holding PT Techno9 Indonesia or give up 23.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. PT Kusuma Kemindo
Performance |
| Timeline |
| PT Techno9 Indonesia |
| PT Kusuma Kemindo |
PT Techno9 and PT Kusuma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and PT Kusuma
The main advantage of trading using opposite PT Techno9 and PT Kusuma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, PT Kusuma 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 PT Kusuma will offset losses from the drop in PT Kusuma's long position.| PT Techno9 vs. Indointernet Tbk PT | PT Techno9 vs. Multipolar Technology Tbk | PT Techno9 vs. Indosterling Technomedia Tbk | PT Techno9 vs. PT Data Sinergitama |
| PT Kusuma vs. PT Dewi Shri | PT Kusuma vs. PT Cilacap Samudera | PT Kusuma vs. PT Arkora Hydro | PT Kusuma vs. Habco Trans Maritima |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |