Correlation Between PT Indah and BillerudKorsns

Can any of the company-specific risk be diversified away by investing in both PT Indah and BillerudKorsns 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 PT Indah and BillerudKorsns into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PT Indah Kiat and BillerudKorsns AB, you can compare the effects of market volatilities on PT Indah and BillerudKorsns 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 PT Indah with a short position of BillerudKorsns. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indah and BillerudKorsns.

Diversification Opportunities for PT Indah and BillerudKorsns

-0.17

Correlation Coefficient

PT Indah  BillerudKorsns

Good diversification

The 3 months correlation between PIKQF and BillerudKorsns is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Indah Kiat and BillerudKorsns AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BillerudKorsns AB and PT Indah 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 PT Indah Kiat are associated (or correlated) with BillerudKorsns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BillerudKorsns AB has no effect on the direction of PT Indah i.e., PT Indah and BillerudKorsns go up and down completely randomly.

Pair Corralation between PT Indah and BillerudKorsns

If you would invest  37.00  in PT Indah Kiat on July 28, 2025 and sell it today you would earn a total of  0.00  from holding PT Indah Kiat or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.52%
Values	Daily Returns

PT Indah Kiat  vs.  BillerudKorsns AB

PT Indah Kiat

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Indah Kiat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PT Indah is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BillerudKorsns AB

Risk-Adjusted Performance

Weakest

Over the last 90 days BillerudKorsns AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with PT Indah and BillerudKorsns

The main advantage of trading using opposite PT Indah and BillerudKorsns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indah position performs unexpectedly, BillerudKorsns 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 BillerudKorsns will offset losses from the drop in BillerudKorsns' long position.

The idea behind PT Indah Kiat and BillerudKorsns AB 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.