Correlation Between Indointernet Tbk and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Indointernet Tbk and Imago Mulia 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 Indointernet Tbk and Imago Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indointernet Tbk PT and Imago Mulia Persada, you can compare the effects of market volatilities on Indointernet Tbk and Imago Mulia 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 Indointernet Tbk with a short position of Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indointernet Tbk and Imago Mulia.
Diversification Opportunities for Indointernet Tbk and Imago Mulia
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Indointernet and Imago is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Indointernet Tbk PT and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada and Indointernet Tbk 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 Indointernet Tbk PT are associated (or correlated) with Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Indointernet Tbk i.e., Indointernet Tbk and Imago Mulia go up and down completely randomly.
Pair Corralation between Indointernet Tbk and Imago Mulia
Assuming the 90 days trading horizon Indointernet Tbk PT is expected to under-perform the Imago Mulia. But the stock apears to be less risky and, when comparing its historical volatility, Indointernet Tbk PT is 3.29 times less risky than Imago Mulia. The stock trades about -0.28 of its potential returns per unit of risk. The Imago Mulia Persada is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 9,100 in Imago Mulia Persada on September 1, 2024 and sell it today you would lose (800.00) from holding Imago Mulia Persada or give up 8.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Indointernet Tbk PT vs. Imago Mulia Persada
Performance |
| Timeline |
| Indointernet Tbk |
| Imago Mulia Persada |
Indointernet Tbk and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indointernet Tbk and Imago Mulia
The main advantage of trading using opposite Indointernet Tbk and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indointernet Tbk position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia's long position.| Indointernet Tbk vs. DCI Indonesia Tbk | Indointernet Tbk vs. Digital Mediatama Maxima | Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Bank Net Indonesia |
| Imago Mulia vs. Panca Anugrah Wisesa | Imago Mulia vs. PT Sunter Lakeside | Imago Mulia vs. Nusa Palapa Gemilang | Imago Mulia vs. Ulima Nitra PT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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