Correlation Between Kohls Corp and PT Mitra

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

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

Diversification Opportunities for Kohls Corp and PT Mitra

0.58

Correlation Coefficient

Kohls Corp  PT Mitra

Very weak diversification

The 3 months correlation between Kohls and PMDKF is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kohls Corp and PT Mitra Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mitra Adiperkasa and Kohls Corp 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 Kohls Corp are associated (or correlated) with PT Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mitra Adiperkasa has no effect on the direction of Kohls Corp i.e., Kohls Corp and PT Mitra go up and down completely randomly.

Pair Corralation between Kohls Corp and PT Mitra

If you would invest  11.00  in PT Mitra Adiperkasa on March 8, 2024 and sell it today you would earn a total of  0.00  from holding PT Mitra Adiperkasa or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Kohls Corp  vs.  PT Mitra Adiperkasa

Kohls Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kohls Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

PT Mitra Adiperkasa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Mitra Adiperkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Kohls Corp and PT Mitra

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

The idea behind Kohls Corp and PT Mitra Adiperkasa 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.