Correlation Between Energi Mega and Inti Bangun
Can any of the company-specific risk be diversified away by investing in both Energi Mega 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 Energi Mega and Inti Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energi Mega Persada and Inti Bangun Sejahtera, you can compare the effects of market volatilities on Energi Mega 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 Energi Mega with a short position of Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energi Mega and Inti Bangun.
Diversification Opportunities for Energi Mega and Inti Bangun
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energi and Inti is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Energi Mega Persada 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 Energi Mega 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 Energi Mega Persada 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 Energi Mega i.e., Energi Mega and Inti Bangun go up and down completely randomly.
Pair Corralation between Energi Mega and Inti Bangun
Assuming the 90 days trading horizon Energi Mega Persada is expected to under-perform the Inti Bangun. In addition to that, Energi Mega is 1.37 times more volatile than Inti Bangun Sejahtera. It trades about -0.08 of its total potential returns per unit of risk. Inti Bangun Sejahtera is currently generating about -0.01 per unit of volatility. If you would invest 512,500 in Inti Bangun Sejahtera on September 12, 2024 and sell it today you would lose (5,000) from holding Inti Bangun Sejahtera or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energi Mega Persada vs. Inti Bangun Sejahtera
Performance |
| Timeline |
| Energi Mega Persada |
| Inti Bangun Sejahtera |
Energi Mega and Inti Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energi Mega and Inti Bangun
The main advantage of trading using opposite Energi Mega and Inti Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energi Mega 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.| Energi Mega vs. Bakrieland Development Tbk | Energi Mega vs. Bakrie Sumatera Plantations | Energi Mega vs. Bakrie Brothers Tbk | Energi Mega vs. Bumi Resources Tbk |
| Inti Bangun vs. Mnc Land Tbk | Inti Bangun vs. MNC Vision Networks | Inti Bangun vs. MD Pictures Tbk | Inti Bangun vs. Link Net 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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