Correlation Between Rukun Raharja and Kmi Wire
Can any of the company-specific risk be diversified away by investing in both Rukun Raharja and Kmi Wire 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 Rukun Raharja and Kmi Wire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rukun Raharja Tbk and Kmi Wire And, you can compare the effects of market volatilities on Rukun Raharja and Kmi Wire 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 Rukun Raharja with a short position of Kmi Wire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rukun Raharja and Kmi Wire.
Diversification Opportunities for Rukun Raharja and Kmi Wire
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rukun and Kmi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Rukun Raharja Tbk and Kmi Wire And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kmi Wire And and Rukun Raharja 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 Rukun Raharja Tbk are associated (or correlated) with Kmi Wire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kmi Wire And has no effect on the direction of Rukun Raharja i.e., Rukun Raharja and Kmi Wire go up and down completely randomly.
Pair Corralation between Rukun Raharja and Kmi Wire
Assuming the 90 days trading horizon Rukun Raharja Tbk is expected to generate 4.9 times more return on investment than Kmi Wire. However, Rukun Raharja is 4.9 times more volatile than Kmi Wire And. It trades about 0.17 of its potential returns per unit of risk. Kmi Wire And is currently generating about -0.05 per unit of risk. If you would invest 170,000 in Rukun Raharja Tbk on August 31, 2024 and sell it today you would earn a total of 43,000 from holding Rukun Raharja Tbk or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rukun Raharja Tbk vs. Kmi Wire And
Performance |
| Timeline |
| Rukun Raharja Tbk |
| Kmi Wire And |
Rukun Raharja and Kmi Wire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rukun Raharja and Kmi Wire
The main advantage of trading using opposite Rukun Raharja and Kmi Wire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rukun Raharja position performs unexpectedly, Kmi Wire 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 Kmi Wire will offset losses from the drop in Kmi Wire's long position.| Rukun Raharja vs. Nusantara Infrastructure Tbk | Rukun Raharja vs. Panin Financial Tbk | Rukun Raharja vs. Ramayana Lestari Sentosa | Rukun Raharja vs. Kawasan Industri Jababeka |
| Kmi Wire vs. Kabelindo Murni Tbk | Kmi Wire vs. Jembo Cable | Kmi Wire vs. Gajah Tunggal Tbk | Kmi Wire vs. Indospring 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |