Correlation Between PT Kalbe and Johnson Johnson
Can any of the company-specific risk be diversified away by investing in both PT Kalbe and Johnson Johnson 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 Kalbe and Johnson Johnson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Kalbe Farma and Johnson Johnson, you can compare the effects of market volatilities on PT Kalbe and Johnson Johnson 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 Kalbe with a short position of Johnson Johnson. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Kalbe and Johnson Johnson.
Diversification Opportunities for PT Kalbe and Johnson Johnson
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTKFF and Johnson is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Kalbe Farma and Johnson Johnson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johnson Johnson and PT Kalbe 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 Kalbe Farma are associated (or correlated) with Johnson Johnson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johnson Johnson has no effect on the direction of PT Kalbe i.e., PT Kalbe and Johnson Johnson go up and down completely randomly.
Pair Corralation between PT Kalbe and Johnson Johnson
If you would invest 9.00 in PT Kalbe Farma on January 25, 2024 and sell it today you would earn a total of 0.00 from holding PT Kalbe Farma 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 |
PT Kalbe Farma vs. Johnson Johnson
Performance |
| Timeline |
| PT Kalbe Farma |
| Johnson Johnson |
PT Kalbe and Johnson Johnson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Kalbe and Johnson Johnson
The main advantage of trading using opposite PT Kalbe and Johnson Johnson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Kalbe position performs unexpectedly, Johnson Johnson 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 Johnson Johnson will offset losses from the drop in Johnson Johnson's long position.| PT Kalbe vs. Eli Lilly and | PT Kalbe vs. Johnson Johnson | PT Kalbe vs. Merck Company | PT Kalbe vs. Roche Holding Ltd |
| Johnson Johnson vs. Silver Spike Investment | Johnson Johnson vs. Alkermes Plc | Johnson Johnson vs. Eagle Pharmaceuticals | Johnson Johnson vs. Evotec SE ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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