Correlation Between Destinasi Tirta and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Destinasi Tirta and Kokoh Inti 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 Destinasi Tirta and Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Destinasi Tirta Nusantara and Kokoh Inti Arebama, you can compare the effects of market volatilities on Destinasi Tirta and Kokoh Inti 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 Destinasi Tirta with a short position of Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Destinasi Tirta and Kokoh Inti.
Diversification Opportunities for Destinasi Tirta and Kokoh Inti
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Destinasi and Kokoh is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Destinasi Tirta Nusantara and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama and Destinasi Tirta 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 Destinasi Tirta Nusantara are associated (or correlated) with Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of Destinasi Tirta i.e., Destinasi Tirta and Kokoh Inti go up and down completely randomly.
Pair Corralation between Destinasi Tirta and Kokoh Inti
Assuming the 90 days trading horizon Destinasi Tirta Nusantara is expected to generate 0.78 times more return on investment than Kokoh Inti. However, Destinasi Tirta Nusantara is 1.29 times less risky than Kokoh Inti. It trades about 0.02 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about 0.0 per unit of risk. If you would invest 26,000 in Destinasi Tirta Nusantara on September 3, 2024 and sell it today you would earn a total of 1,000.00 from holding Destinasi Tirta Nusantara or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Destinasi Tirta Nusantara vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Destinasi Tirta Nusantara |
| Kokoh Inti Arebama |
Destinasi Tirta and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Destinasi Tirta and Kokoh Inti
The main advantage of trading using opposite Destinasi Tirta and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Destinasi Tirta position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti's long position.| Destinasi Tirta vs. Panorama Sentrawisata Tbk | Destinasi Tirta vs. Pembangunan Graha Lestari | Destinasi Tirta vs. Hotel Sahid Jaya | Destinasi Tirta vs. Pembangunan Jaya Ancol |
| Kokoh Inti vs. Intanwijaya Internasional Tbk | Kokoh Inti vs. Champion Pacific Indonesia | Kokoh Inti vs. Mitra Pinasthika Mustika | Kokoh Inti vs. Jakarta Int Hotels |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |