Correlation Between Rukun Raharja and Kabelindo Murni
Can any of the company-specific risk be diversified away by investing in both Rukun Raharja and Kabelindo Murni 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 Kabelindo Murni 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 Kabelindo Murni Tbk, you can compare the effects of market volatilities on Rukun Raharja and Kabelindo Murni 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 Kabelindo Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rukun Raharja and Kabelindo Murni.
Diversification Opportunities for Rukun Raharja and Kabelindo Murni
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rukun and Kabelindo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rukun Raharja Tbk and Kabelindo Murni Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kabelindo Murni Tbk 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 Kabelindo Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kabelindo Murni Tbk has no effect on the direction of Rukun Raharja i.e., Rukun Raharja and Kabelindo Murni go up and down completely randomly.
Pair Corralation between Rukun Raharja and Kabelindo Murni
Assuming the 90 days trading horizon Rukun Raharja Tbk is expected to generate 1.63 times more return on investment than Kabelindo Murni. However, Rukun Raharja is 1.63 times more volatile than Kabelindo Murni Tbk. It trades about 0.12 of its potential returns per unit of risk. Kabelindo Murni Tbk is currently generating about 0.08 per unit of risk. If you would invest 136,617 in Rukun Raharja Tbk on August 29, 2024 and sell it today you would earn a total of 97,383 from holding Rukun Raharja Tbk or generate 71.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rukun Raharja Tbk vs. Kabelindo Murni Tbk
Performance |
| Timeline |
| Rukun Raharja Tbk |
| Kabelindo Murni Tbk |
Rukun Raharja and Kabelindo Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rukun Raharja and Kabelindo Murni
The main advantage of trading using opposite Rukun Raharja and Kabelindo Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rukun Raharja position performs unexpectedly, Kabelindo Murni 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 Kabelindo Murni will offset losses from the drop in Kabelindo Murni'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 |
| Kabelindo Murni vs. Kmi Wire And | Kabelindo Murni vs. Jembo Cable | Kabelindo Murni vs. Sumi Indo Kabel | Kabelindo Murni vs. Voksel Electric 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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