Correlation Between Equinix and Kokoh Inti
Can any of the company-specific risk be diversified away by investing in both Equinix and Kokoh Inti 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 Equinix and Kokoh Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and Kokoh Inti Arebama, you can compare the effects of market volatilities on Equinix and Kokoh Inti 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 Equinix with a short position of Kokoh Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and Kokoh Inti.
Diversification Opportunities for Equinix and Kokoh Inti
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Equinix and Kokoh is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Kokoh Inti Arebama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kokoh Inti Arebama and Equinix 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 Equinix are associated (or correlated) with Kokoh Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kokoh Inti Arebama has no effect on the direction of Equinix i.e., Equinix and Kokoh Inti go up and down completely randomly.
Pair Corralation between Equinix and Kokoh Inti
Given the investment horizon of 90 days Equinix is expected to under-perform the Kokoh Inti. In addition to that, Equinix is 1.22 times more volatile than Kokoh Inti Arebama. It trades about -0.35 of its total potential returns per unit of risk. Kokoh Inti Arebama is currently generating about -0.16 per unit of volatility. If you would invest 7,200 in Kokoh Inti Arebama on January 20, 2024 and sell it today you would lose (200.00) from holding Kokoh Inti Arebama or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Equinix vs. Kokoh Inti Arebama
Performance |
| Timeline |
| Equinix |
| Kokoh Inti Arebama |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Equinix and Kokoh Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and Kokoh Inti
The main advantage of trading using opposite Equinix and Kokoh Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, Kokoh Inti 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 Kokoh Inti will offset losses from the drop in Kokoh Inti's long position.| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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