Correlation Between Intiland Development and Agung Podomoro
Can any of the company-specific risk be diversified away by investing in both Intiland Development and Agung Podomoro 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 Intiland Development and Agung Podomoro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intiland Development Tbk and Agung Podomoro Land, you can compare the effects of market volatilities on Intiland Development and Agung Podomoro 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 Intiland Development with a short position of Agung Podomoro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intiland Development and Agung Podomoro.
Diversification Opportunities for Intiland Development and Agung Podomoro
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intiland and Agung is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intiland Development Tbk and Agung Podomoro Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agung Podomoro Land and Intiland Development 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 Intiland Development Tbk are associated (or correlated) with Agung Podomoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agung Podomoro Land has no effect on the direction of Intiland Development i.e., Intiland Development and Agung Podomoro go up and down completely randomly.
Pair Corralation between Intiland Development and Agung Podomoro
Assuming the 90 days trading horizon Intiland Development Tbk is expected to generate 0.69 times more return on investment than Agung Podomoro. However, Intiland Development Tbk is 1.46 times less risky than Agung Podomoro. It trades about -0.02 of its potential returns per unit of risk. Agung Podomoro Land is currently generating about -0.02 per unit of risk. If you would invest 17,600 in Intiland Development Tbk on September 3, 2024 and sell it today you would lose (1,200) from holding Intiland Development Tbk or give up 6.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intiland Development Tbk vs. Agung Podomoro Land
Performance |
| Timeline |
| Intiland Development Tbk |
| Agung Podomoro Land |
Intiland Development and Agung Podomoro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intiland Development and Agung Podomoro
The main advantage of trading using opposite Intiland Development and Agung Podomoro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intiland Development position performs unexpectedly, Agung Podomoro 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 Agung Podomoro will offset losses from the drop in Agung Podomoro's long position.| Intiland Development vs. Mitra Pinasthika Mustika | Intiland Development vs. Jakarta Int Hotels | Intiland Development vs. Asuransi Harta Aman | Intiland Development vs. Indosterling Technomedia Tbk |
| Agung Podomoro vs. Alam Sutera Realty | Agung Podomoro vs. Bumi Serpong Damai | Agung Podomoro vs. Summarecon Agung Tbk | Agung Podomoro vs. Ciputra Development 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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