Correlation Between Indoritel Makmur and Indosat Tbk
Can any of the company-specific risk be diversified away by investing in both Indoritel Makmur and Indosat Tbk 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 Indoritel Makmur and Indosat Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indoritel Makmur Internasional and Indosat Tbk, you can compare the effects of market volatilities on Indoritel Makmur and Indosat Tbk 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 Indoritel Makmur with a short position of Indosat Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indoritel Makmur and Indosat Tbk.
Diversification Opportunities for Indoritel Makmur and Indosat Tbk
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indoritel and Indosat is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Indoritel Makmur Internasional and Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosat Tbk and Indoritel Makmur 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 Indoritel Makmur Internasional are associated (or correlated) with Indosat Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosat Tbk has no effect on the direction of Indoritel Makmur i.e., Indoritel Makmur and Indosat Tbk go up and down completely randomly.
Pair Corralation between Indoritel Makmur and Indosat Tbk
Assuming the 90 days trading horizon Indoritel Makmur Internasional is expected to generate 0.58 times more return on investment than Indosat Tbk. However, Indoritel Makmur Internasional is 1.73 times less risky than Indosat Tbk. It trades about 0.09 of its potential returns per unit of risk. Indosat Tbk is currently generating about 0.0 per unit of risk. If you would invest 375,000 in Indoritel Makmur Internasional on September 3, 2024 and sell it today you would earn a total of 532,500 from holding Indoritel Makmur Internasional or generate 142.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indoritel Makmur Internasional vs. Indosat Tbk
Performance |
| Timeline |
| Indoritel Makmur Int |
| Indosat Tbk |
Indoritel Makmur and Indosat Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indoritel Makmur and Indosat Tbk
The main advantage of trading using opposite Indoritel Makmur and Indosat Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indoritel Makmur position performs unexpectedly, Indosat Tbk 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 Indosat Tbk will offset losses from the drop in Indosat Tbk's long position.| Indoritel Makmur vs. Fast Food Indonesia | Indoritel Makmur vs. Centratama Telekomunikasi Ind | Indoritel Makmur vs. Sumber Alfaria Trijaya | Indoritel Makmur vs. Bayu Buana Tbk |
| Indosat Tbk vs. Astra Agro Lestari | Indosat Tbk vs. Vale Indonesia Tbk | Indosat Tbk vs. Timah Persero Tbk | Indosat Tbk vs. Medco Energi Internasional |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |