Correlation Between GTS Internasional and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both GTS Internasional and Integra Indocabinet 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 GTS Internasional and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GTS Internasional Tbk and Integra Indocabinet Tbk, you can compare the effects of market volatilities on GTS Internasional and Integra Indocabinet 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 GTS Internasional with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTS Internasional and Integra Indocabinet.
Diversification Opportunities for GTS Internasional and Integra Indocabinet
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GTS and Integra is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GTS Internasional Tbk and Integra Indocabinet Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Indocabinet Tbk and GTS Internasional 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 GTS Internasional Tbk are associated (or correlated) with Integra Indocabinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Indocabinet Tbk has no effect on the direction of GTS Internasional i.e., GTS Internasional and Integra Indocabinet go up and down completely randomly.
Pair Corralation between GTS Internasional and Integra Indocabinet
Assuming the 90 days trading horizon GTS Internasional Tbk is expected to under-perform the Integra Indocabinet. But the stock apears to be less risky and, when comparing its historical volatility, GTS Internasional Tbk is 2.16 times less risky than Integra Indocabinet. The stock trades about -0.27 of its potential returns per unit of risk. The Integra Indocabinet Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 31,400 in Integra Indocabinet Tbk on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Integra Indocabinet Tbk or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTS Internasional Tbk vs. Integra Indocabinet Tbk
Performance |
| Timeline |
| GTS Internasional Tbk |
| Integra Indocabinet Tbk |
GTS Internasional and Integra Indocabinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTS Internasional and Integra Indocabinet
The main advantage of trading using opposite GTS Internasional and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTS Internasional position performs unexpectedly, Integra Indocabinet 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 Integra Indocabinet will offset losses from the drop in Integra Indocabinet's long position.| GTS Internasional vs. Transcoal Pacific Tbk | GTS Internasional vs. PT Temas Tbk | GTS Internasional vs. Samudera Indonesia Tbk | GTS Internasional vs. Pelita Samudera Shipping |
| Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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