Correlation Between Kioson Komersial and United Parcel
Can any of the company-specific risk be diversified away by investing in both Kioson Komersial and United Parcel 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 Kioson Komersial and United Parcel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kioson Komersial Indonesia and United Parcel Service, you can compare the effects of market volatilities on Kioson Komersial and United Parcel 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 Kioson Komersial with a short position of United Parcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kioson Komersial and United Parcel.
Diversification Opportunities for Kioson Komersial and United Parcel
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kioson and United is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kioson Komersial Indonesia and United Parcel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parcel Service and Kioson Komersial 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 Kioson Komersial Indonesia are associated (or correlated) with United Parcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parcel Service has no effect on the direction of Kioson Komersial i.e., Kioson Komersial and United Parcel go up and down completely randomly.
Pair Corralation between Kioson Komersial and United Parcel
Assuming the 90 days trading horizon Kioson Komersial Indonesia is expected to under-perform the United Parcel. In addition to that, Kioson Komersial is 2.57 times more volatile than United Parcel Service. It trades about -0.07 of its total potential returns per unit of risk. United Parcel Service is currently generating about -0.01 per unit of volatility. If you would invest 16,824 in United Parcel Service on January 27, 2024 and sell it today you would lose (2,085) from holding United Parcel Service or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.56% |
| Values | Daily Returns |
Kioson Komersial Indonesia vs. United Parcel Service
Performance |
| Timeline |
| Kioson Komersial Ind |
| United Parcel Service |
Kioson Komersial and United Parcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kioson Komersial and United Parcel
The main advantage of trading using opposite Kioson Komersial and United Parcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kioson Komersial position performs unexpectedly, United Parcel 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 United Parcel will offset losses from the drop in United Parcel's long position.| Kioson Komersial vs. Abm Investama Tbk | Kioson Komersial vs. Arita Prima Indonesia | Kioson Komersial vs. Bali Towerindo Sentra | Kioson Komersial vs. Austindo Nusantara Jaya |
| United Parcel vs. JB Hunt Transport | United Parcel vs. Aquagold International | United Parcel vs. Thrivent High Yield | United Parcel vs. Morningstar Unconstrained Allocation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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