Correlation Between Akr Corporindo and Intel

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Can any of the company-specific risk be diversified away by investing in both Akr Corporindo and Intel 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 Akr Corporindo and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akr Corporindo Tbk and Intel, you can compare the effects of market volatilities on Akr Corporindo and Intel 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 Akr Corporindo with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akr Corporindo and Intel.

Diversification Opportunities for Akr Corporindo and Intel

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Akr and Intel is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Akr Corporindo Tbk and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Akr Corporindo 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 Akr Corporindo Tbk are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Akr Corporindo i.e., Akr Corporindo and Intel go up and down completely randomly.

Pair Corralation between Akr Corporindo and Intel

Assuming the 90 days trading horizon Akr Corporindo Tbk is expected to generate 0.59 times more return on investment than Intel. However, Akr Corporindo Tbk is 1.69 times less risky than Intel. It trades about 0.11 of its potential returns per unit of risk. Intel is currently generating about 0.05 per unit of risk. If you would invest  165,500  in Akr Corporindo Tbk on December 29, 2023 and sell it today you would earn a total of  5,500  from holding Akr Corporindo Tbk or generate 3.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Akr Corporindo Tbk  vs.  Intel

 Performance 
       Timeline  
Akr Corporindo Tbk 

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Akr Corporindo Tbk are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Akr Corporindo disclosed solid returns over the last few months and may actually be approaching a breakup point.
Intel 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Akr Corporindo and Intel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Akr Corporindo and Intel

The main advantage of trading using opposite Akr Corporindo and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akr Corporindo position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.
The idea behind Akr Corporindo Tbk and Intel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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