Correlation Between Citra Borneo and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both Citra Borneo and Indosterling Technomedia 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 Citra Borneo and Indosterling Technomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citra Borneo Utama and Indosterling Technomedia Tbk, you can compare the effects of market volatilities on Citra Borneo and Indosterling Technomedia 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 Citra Borneo with a short position of Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citra Borneo and Indosterling Technomedia.
Diversification Opportunities for Citra Borneo and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citra and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citra Borneo Utama and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia and Citra Borneo 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 Citra Borneo Utama are associated (or correlated) with Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of Citra Borneo i.e., Citra Borneo and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between Citra Borneo and Indosterling Technomedia
If you would invest 5,000 in Indosterling Technomedia Tbk on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Indosterling Technomedia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citra Borneo Utama vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| Citra Borneo Utama |
| Indosterling Technomedia |
Citra Borneo and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citra Borneo and Indosterling Technomedia
The main advantage of trading using opposite Citra Borneo and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citra Borneo position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia's long position.| Citra Borneo vs. Indosterling Technomedia Tbk | Citra Borneo vs. PT Hatten Bali | Citra Borneo vs. Fast Food Indonesia | Citra Borneo vs. Inocycle Technology Tbk |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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