Correlation Between Indo Kordsa and Apple
Can any of the company-specific risk be diversified away by investing in both Indo Kordsa and Apple 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 Indo Kordsa and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Kordsa Tbk and Apple Inc, you can compare the effects of market volatilities on Indo Kordsa and Apple 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 Indo Kordsa with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Kordsa and Apple.
Diversification Opportunities for Indo Kordsa and Apple
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indo and Apple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indo Kordsa Tbk and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Indo Kordsa 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 Indo Kordsa Tbk are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Indo Kordsa i.e., Indo Kordsa and Apple go up and down completely randomly.
Pair Corralation between Indo Kordsa and Apple
Assuming the 90 days trading horizon Indo Kordsa Tbk is expected to under-perform the Apple. In addition to that, Indo Kordsa is 1.19 times more volatile than Apple Inc. It trades about -0.05 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.01 per unit of volatility. If you would invest 16,817 in Apple Inc on December 29, 2023 and sell it today you would earn a total of 331.00 from holding Apple Inc or generate 1.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
Indo Kordsa Tbk vs. Apple Inc
Performance |
Timeline |
Indo Kordsa Tbk |
Apple Inc |
Indo Kordsa and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indo Kordsa and Apple
The main advantage of trading using opposite Indo Kordsa and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Kordsa position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.Indo Kordsa vs. Siloam International Hospitals | Indo Kordsa vs. Net Visi Media | Indo Kordsa vs. Garuda Metalindo Tbk | Indo Kordsa vs. Visi Media Asia |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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