Correlation Between Kokoh Inti and Chevron Corp
Can any of the company-specific risk be diversified away by investing in both Kokoh Inti and Chevron Corp 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 Kokoh Inti and Chevron Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kokoh Inti Arebama and Chevron Corp, you can compare the effects of market volatilities on Kokoh Inti and Chevron Corp 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 Kokoh Inti with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kokoh Inti and Chevron Corp.
Diversification Opportunities for Kokoh Inti and Chevron Corp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kokoh and Chevron is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kokoh Inti Arebama and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and Kokoh Inti 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 Kokoh Inti Arebama are associated (or correlated) with Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of Kokoh Inti i.e., Kokoh Inti and Chevron Corp go up and down completely randomly.
Pair Corralation between Kokoh Inti and Chevron Corp
Assuming the 90 days trading horizon Kokoh Inti Arebama is expected to under-perform the Chevron Corp. In addition to that, Kokoh Inti is 1.39 times more volatile than Chevron Corp. It trades about -0.26 of its total potential returns per unit of risk. Chevron Corp is currently generating about 0.33 per unit of volatility. If you would invest 15,527 in Chevron Corp on January 26, 2024 and sell it today you would earn a total of 830.00 from holding Chevron Corp or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Kokoh Inti Arebama vs. Chevron Corp
Performance |
| Timeline |
| Kokoh Inti Arebama |
| Chevron Corp |
Kokoh Inti and Chevron Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kokoh Inti and Chevron Corp
The main advantage of trading using opposite Kokoh Inti and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kokoh Inti position performs unexpectedly, Chevron Corp 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 Chevron Corp will offset losses from the drop in Chevron Corp's long position.| Kokoh Inti vs. Multi Indocitra Tbk | Kokoh Inti vs. Jasuindo Tiga Perkasa | Kokoh Inti vs. Perdana Bangun Pusaka | Kokoh Inti vs. Star Pacific Tbk |
| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. Suncor Energy | Chevron Corp vs. TotalEnergies SE ADR | Chevron Corp vs. Petrleo Brasileiro SA |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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