Correlation Between Sinergi Inti and Indonesia Fibreboard
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti and Indonesia Fibreboard 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 Sinergi Inti and Indonesia Fibreboard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinergi Inti Plastindo and Indonesia Fibreboard Industry, you can compare the effects of market volatilities on Sinergi Inti and Indonesia Fibreboard 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 Sinergi Inti with a short position of Indonesia Fibreboard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Indonesia Fibreboard.
Diversification Opportunities for Sinergi Inti and Indonesia Fibreboard
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinergi and Indonesia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo and Indonesia Fibreboard Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Fibreboard and Sinergi Inti 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 Sinergi Inti Plastindo are associated (or correlated) with Indonesia Fibreboard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Fibreboard has no effect on the direction of Sinergi Inti i.e., Sinergi Inti and Indonesia Fibreboard go up and down completely randomly.
Pair Corralation between Sinergi Inti and Indonesia Fibreboard
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to under-perform the Indonesia Fibreboard. In addition to that, Sinergi Inti is 1.38 times more volatile than Indonesia Fibreboard Industry. It trades about -0.06 of its total potential returns per unit of risk. Indonesia Fibreboard Industry is currently generating about 0.07 per unit of volatility. If you would invest 14,057 in Indonesia Fibreboard Industry on September 14, 2024 and sell it today you would earn a total of 7,143 from holding Indonesia Fibreboard Industry or generate 50.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. Indonesia Fibreboard Industry
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| Indonesia Fibreboard |
Sinergi Inti and Indonesia Fibreboard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and Indonesia Fibreboard
The main advantage of trading using opposite Sinergi Inti and Indonesia Fibreboard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti position performs unexpectedly, Indonesia Fibreboard 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 Indonesia Fibreboard will offset losses from the drop in Indonesia Fibreboard's long position.| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo Tbk |
| Indonesia Fibreboard vs. Gunung Raja Paksi | Indonesia Fibreboard vs. Satyamitra Kemas Lestari | Indonesia Fibreboard vs. Ifishdeco PT | Indonesia Fibreboard vs. Saraswanti Anugerah Makmur |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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