Correlation Between INDO TAMBANGRAYA and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both INDO TAMBANGRAYA and Comba Telecom 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 INDO TAMBANGRAYA and Comba Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDO TAMBANGRAYA MG and Comba Telecom Systems, you can compare the effects of market volatilities on INDO TAMBANGRAYA and Comba Telecom 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 INDO TAMBANGRAYA with a short position of Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDO TAMBANGRAYA and Comba Telecom.
Diversification Opportunities for INDO TAMBANGRAYA and Comba Telecom
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INDO and Comba is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding INDO TAMBANGRAYA MG and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems and INDO TAMBANGRAYA 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 INDO TAMBANGRAYA MG are associated (or correlated) with Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of INDO TAMBANGRAYA i.e., INDO TAMBANGRAYA and Comba Telecom go up and down completely randomly.
Pair Corralation between INDO TAMBANGRAYA and Comba Telecom
Assuming the 90 days trading horizon INDO TAMBANGRAYA MG is expected to generate 0.56 times more return on investment than Comba Telecom. However, INDO TAMBANGRAYA MG is 1.79 times less risky than Comba Telecom. It trades about 0.05 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about -0.07 per unit of risk. If you would invest 154.00 in INDO TAMBANGRAYA MG on September 5, 2024 and sell it today you would earn a total of 3.00 from holding INDO TAMBANGRAYA MG or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDO TAMBANGRAYA MG vs. Comba Telecom Systems
Performance |
| Timeline |
| INDO TAMBANGRAYA |
| Comba Telecom Systems |
INDO TAMBANGRAYA and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDO TAMBANGRAYA and Comba Telecom
The main advantage of trading using opposite INDO TAMBANGRAYA and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDO TAMBANGRAYA position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| INDO TAMBANGRAYA vs. Comba Telecom Systems | INDO TAMBANGRAYA vs. Choice Hotels International | INDO TAMBANGRAYA vs. Xenia Hotels Resorts | INDO TAMBANGRAYA vs. Cogent Communications Holdings |
| Comba Telecom vs. TOTAL GABON | Comba Telecom vs. Walgreens Boots Alliance | Comba Telecom vs. Peak Resources Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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