Correlation Between Dow Jones and Inti Bangun
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Inti 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 Dow Jones and Inti Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Inti Bangun Sejahtera, you can compare the effects of market volatilities on Dow Jones and Inti 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 Dow Jones with a short position of Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Inti Bangun.
Diversification Opportunities for Dow Jones and Inti Bangun
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Inti is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Inti Bangun Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inti Bangun Sejahtera and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Inti Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inti Bangun Sejahtera has no effect on the direction of Dow Jones i.e., Dow Jones and Inti Bangun go up and down completely randomly.
Pair Corralation between Dow Jones and Inti Bangun
Assuming the 90 days trading horizon Dow Jones is expected to generate 4.7 times less return on investment than Inti Bangun. But when comparing it to its historical volatility, Dow Jones Industrial is 3.03 times less risky than Inti Bangun. It trades about 0.14 of its potential returns per unit of risk. Inti Bangun Sejahtera is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 505,000 in Inti Bangun Sejahtera on October 25, 2024 and sell it today you would earn a total of 45,000 from holding Inti Bangun Sejahtera or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Dow Jones Industrial vs. Inti Bangun Sejahtera
Performance |
| Timeline |
Dow Jones and Inti Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Inti Bangun Sejahtera
Pair trading matchups for Inti Bangun
Pair Trading with Dow Jones and Inti Bangun
The main advantage of trading using opposite Dow Jones and Inti Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Inti 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 Inti Bangun will offset losses from the drop in Inti Bangun's long position.| Dow Jones vs. Xiabuxiabu Catering Management | Dow Jones vs. Neogen | Dow Jones vs. Orion Office Reit | Dow Jones vs. Bassett Furniture Industries |
| Inti Bangun vs. Bali Towerindo Sentra | Inti Bangun vs. Dian Swastatika Sentosa | Inti Bangun vs. Humpuss Intermoda Transportasi | Inti Bangun vs. Solusi Tunas Pratama |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |