Correlation Between Intiland Development and Total Bangun
Can any of the company-specific risk be diversified away by investing in both Intiland Development and Total Bangun 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 Total Bangun 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 Total Bangun Persada, you can compare the effects of market volatilities on Intiland Development and Total Bangun 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 Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intiland Development and Total Bangun.
Diversification Opportunities for Intiland Development and Total Bangun
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intiland and Total is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intiland Development Tbk and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada 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 Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of Intiland Development i.e., Intiland Development and Total Bangun go up and down completely randomly.
Pair Corralation between Intiland Development and Total Bangun
Assuming the 90 days trading horizon Intiland Development Tbk is expected to under-perform the Total Bangun. But the stock apears to be less risky and, when comparing its historical volatility, Intiland Development Tbk is 1.68 times less risky than Total Bangun. The stock trades about -0.09 of its potential returns per unit of risk. The Total Bangun Persada is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64,000 in Total Bangun Persada on September 2, 2024 and sell it today you would earn a total of 4,500 from holding Total Bangun Persada or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intiland Development Tbk vs. Total Bangun Persada
Performance |
| Timeline |
| Intiland Development Tbk |
| Total Bangun Persada |
Intiland Development and Total Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intiland Development and Total Bangun
The main advantage of trading using opposite Intiland Development and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intiland Development position performs unexpectedly, Total Bangun 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 Total Bangun will offset losses from the drop in Total Bangun's long position.| Intiland Development vs. Sentul City Tbk | Intiland Development vs. Modernland Realty Ltd | Intiland Development vs. Kawasan Industri Jababeka | Intiland Development vs. Ciputra Development Tbk |
| Total Bangun vs. Matahari Department Store | Total Bangun vs. Multi Medika Internasional | Total Bangun vs. Visi Media Asia | Total Bangun vs. Bayan Resources 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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