Correlation Between Campina Ice and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both Campina Ice and Integra Indocabinet 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 Campina Ice and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campina Ice Cream and Integra Indocabinet Tbk, you can compare the effects of market volatilities on Campina Ice and Integra Indocabinet 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 Campina Ice with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campina Ice and Integra Indocabinet.
Diversification Opportunities for Campina Ice and Integra Indocabinet
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Campina and Integra is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Campina Ice Cream and Integra Indocabinet Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Indocabinet Tbk and Campina Ice 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 Campina Ice Cream are associated (or correlated) with Integra Indocabinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Indocabinet Tbk has no effect on the direction of Campina Ice i.e., Campina Ice and Integra Indocabinet go up and down completely randomly.
Pair Corralation between Campina Ice and Integra Indocabinet
Assuming the 90 days trading horizon Campina Ice Cream is expected to under-perform the Integra Indocabinet. But the stock apears to be less risky and, when comparing its historical volatility, Campina Ice Cream is 2.48 times less risky than Integra Indocabinet. The stock trades about -0.12 of its potential returns per unit of risk. The Integra Indocabinet Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 32,000 in Integra Indocabinet Tbk on September 2, 2024 and sell it today you would lose (200.00) from holding Integra Indocabinet Tbk or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campina Ice Cream vs. Integra Indocabinet Tbk
Performance |
| Timeline |
| Campina Ice Cream |
| Integra Indocabinet Tbk |
Campina Ice and Integra Indocabinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campina Ice and Integra Indocabinet
The main advantage of trading using opposite Campina Ice and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campina Ice position performs unexpectedly, Integra Indocabinet 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 Integra Indocabinet will offset losses from the drop in Integra Indocabinet's long position.| Campina Ice vs. Bank BRISyariah Tbk | Campina Ice vs. Mitra Pinasthika Mustika | Campina Ice vs. Jakarta Int Hotels | Campina Ice vs. Indosterling Technomedia Tbk |
| Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari PT |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |