Correlation Between Pembangunan Graha and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Pembangunan Graha 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 Pembangunan Graha and Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Graha Lestari and Kokoh Inti Arebama, you can compare the effects of market volatilities on Pembangunan Graha 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 Pembangunan Graha with a short position of Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Graha and Kokoh Inti.
Diversification Opportunities for Pembangunan Graha and Kokoh Inti
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pembangunan and Kokoh is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Graha Lestari 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 Pembangunan 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 Pembangunan Graha Lestari 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 Pembangunan Graha i.e., Pembangunan Graha and Kokoh Inti go up and down completely randomly.
Pair Corralation between Pembangunan Graha and Kokoh Inti
Assuming the 90 days trading horizon Pembangunan Graha Lestari is expected to generate 1.31 times more return on investment than Kokoh Inti. However, Pembangunan Graha is 1.31 times more volatile than Kokoh Inti Arebama. It trades about 0.17 of its potential returns per unit of risk. Kokoh Inti Arebama is currently generating about -0.13 per unit of risk. If you would invest 17,800 in Pembangunan Graha Lestari on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Pembangunan Graha Lestari or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Graha Lestari vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Pembangunan Graha Lestari |
| Kokoh Inti Arebama |
Pembangunan Graha and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Graha and Kokoh Inti
The main advantage of trading using opposite Pembangunan Graha and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Graha 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.| Pembangunan Graha vs. Red Planet Indonesia | Pembangunan Graha vs. Pudjiadi Sons Tbk | Pembangunan Graha vs. Pembangunan Jaya Ancol | Pembangunan Graha vs. Pioneerindo Gourmet International |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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