Correlation Between Indointernet Tbk and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both Indointernet Tbk and Indosterling Technomedia 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 Indosterling Technomedia 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 Indosterling Technomedia Tbk, you can compare the effects of market volatilities on Indointernet Tbk and Indosterling Technomedia 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 Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indointernet Tbk and Indosterling Technomedia.
Diversification Opportunities for Indointernet Tbk and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indointernet and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indointernet Tbk PT and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia 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 Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of Indointernet Tbk i.e., Indointernet Tbk and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between Indointernet Tbk and Indosterling Technomedia
If you would invest 407,000 in Indointernet Tbk PT on September 3, 2024 and sell it today you would lose (10,000) from holding Indointernet Tbk PT or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.3% |
| Values | Daily Returns |
Indointernet Tbk PT vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| Indointernet Tbk |
| Indosterling Technomedia |
Indointernet Tbk and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indointernet Tbk and Indosterling Technomedia
The main advantage of trading using opposite Indointernet Tbk and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indointernet Tbk position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia's long position.| Indointernet Tbk vs. Multipolar Technology Tbk | Indointernet Tbk vs. Indosterling Technomedia Tbk | Indointernet Tbk vs. PT Data Sinergitama | Indointernet Tbk vs. PT Techno9 Indonesia |
| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. PT Data Sinergitama | Indosterling Technomedia vs. PT Techno9 Indonesia |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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