Correlation Between Solidion Technology and PT Kalbe
Can any of the company-specific risk be diversified away by investing in both Solidion Technology and PT Kalbe 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 Solidion Technology and PT Kalbe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solidion Technology and PT Kalbe Farma, you can compare the effects of market volatilities on Solidion Technology and PT Kalbe 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 Solidion Technology with a short position of PT Kalbe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solidion Technology and PT Kalbe.
Diversification Opportunities for Solidion Technology and PT Kalbe
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solidion and PTKFF is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Solidion Technology and PT Kalbe Farma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Kalbe Farma and Solidion Technology 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 Solidion Technology are associated (or correlated) with PT Kalbe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Kalbe Farma has no effect on the direction of Solidion Technology i.e., Solidion Technology and PT Kalbe go up and down completely randomly.
Pair Corralation between Solidion Technology and PT Kalbe
Considering the 90-day investment horizon Solidion Technology is expected to generate 4.56 times more return on investment than PT Kalbe. However, Solidion Technology is 4.56 times more volatile than PT Kalbe Farma. It trades about 0.12 of its potential returns per unit of risk. PT Kalbe Farma is currently generating about -0.21 per unit of risk. If you would invest 38.00 in Solidion Technology on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Solidion Technology or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solidion Technology vs. PT Kalbe Farma
Performance |
| Timeline |
| Solidion Technology |
| PT Kalbe Farma |
Solidion Technology and PT Kalbe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solidion Technology and PT Kalbe
The main advantage of trading using opposite Solidion Technology and PT Kalbe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solidion Technology position performs unexpectedly, PT Kalbe 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 PT Kalbe will offset losses from the drop in PT Kalbe's long position.| Solidion Technology vs. The Mosaic | Solidion Technology vs. Uber Technologies | Solidion Technology vs. NETGEAR | Solidion Technology vs. Marti Technologies |
| PT Kalbe vs. Sanofi ADR | PT Kalbe vs. Bristol Myers Squibb | PT Kalbe vs. AstraZeneca PLC ADR | PT Kalbe vs. Gilead Sciences |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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