Correlation Between Personel Alih and Kedawung Setia
Can any of the company-specific risk be diversified away by investing in both Personel Alih and Kedawung Setia 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 Personel Alih and Kedawung Setia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Personel Alih Daya and Kedawung Setia Industrial, you can compare the effects of market volatilities on Personel Alih and Kedawung Setia 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 Personel Alih with a short position of Kedawung Setia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Personel Alih and Kedawung Setia.
Diversification Opportunities for Personel Alih and Kedawung Setia
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Personel and Kedawung is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Personel Alih Daya and Kedawung Setia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kedawung Setia Industrial and Personel Alih 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 Personel Alih Daya are associated (or correlated) with Kedawung Setia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kedawung Setia Industrial has no effect on the direction of Personel Alih i.e., Personel Alih and Kedawung Setia go up and down completely randomly.
Pair Corralation between Personel Alih and Kedawung Setia
Assuming the 90 days trading horizon Personel Alih Daya is expected to under-perform the Kedawung Setia. In addition to that, Personel Alih is 1.59 times more volatile than Kedawung Setia Industrial. It trades about -0.05 of its total potential returns per unit of risk. Kedawung Setia Industrial is currently generating about -0.04 per unit of volatility. If you would invest 47,500 in Kedawung Setia Industrial on August 30, 2024 and sell it today you would lose (3,500) from holding Kedawung Setia Industrial or give up 7.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Personel Alih Daya vs. Kedawung Setia Industrial
Performance |
| Timeline |
| Personel Alih Daya |
| Kedawung Setia Industrial |
Personel Alih and Kedawung Setia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Personel Alih and Kedawung Setia
The main advantage of trading using opposite Personel Alih and Kedawung Setia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Personel Alih position performs unexpectedly, Kedawung Setia 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 Kedawung Setia will offset losses from the drop in Kedawung Setia's long position.| Personel Alih vs. PT Surya Pertiwi | Personel Alih vs. Satria Mega Kencana | Personel Alih vs. Multifiling Mitra Indonesia | Personel Alih vs. Royal Prima PT |
| Kedawung Setia vs. Kedaung Indah Can | Kedawung Setia vs. Langgeng Makmur Industri | Kedawung Setia vs. Kabelindo Murni Tbk | Kedawung Setia vs. Mustika Ratu 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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