Correlation Between Sinergi Inti and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Sinergi Inti and Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology Tbk, you can compare the effects of market volatilities on Sinergi Inti and Inocycle Technology 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 Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Inocycle Technology.
Diversification Opportunities for Sinergi Inti and Inocycle Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinergi and Inocycle is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sinergi Inti Plastindo and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology Tbk 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 Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Sinergi Inti i.e., Sinergi Inti and Inocycle Technology go up and down completely randomly.
Pair Corralation between Sinergi Inti and Inocycle Technology
Assuming the 90 days trading horizon Sinergi Inti Plastindo is expected to under-perform the Inocycle Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sinergi Inti Plastindo is 1.38 times less risky than Inocycle Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Inocycle Technology Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 12,300 in Inocycle Technology Tbk on September 3, 2024 and sell it today you would lose (2,400) from holding Inocycle Technology Tbk or give up 19.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinergi Inti Plastindo vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Sinergi Inti Plastindo |
| Inocycle Technology Tbk |
Sinergi Inti and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinergi Inti and Inocycle Technology
The main advantage of trading using opposite Sinergi Inti and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinergi Inti position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology'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 |
| Inocycle Technology vs. Mitra Pinasthika Mustika | Inocycle Technology vs. Jakarta Int Hotels | Inocycle Technology vs. Asuransi Harta Aman | Inocycle Technology vs. Indosterling Technomedia 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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