Correlation Between PT Indo and Indo Pureco
Can any of the company-specific risk be diversified away by investing in both PT Indo and Indo Pureco 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 PT Indo and Indo Pureco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indo Boga and Indo Pureco Pratama, you can compare the effects of market volatilities on PT Indo and Indo Pureco 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 PT Indo with a short position of Indo Pureco. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indo and Indo Pureco.
Diversification Opportunities for PT Indo and Indo Pureco
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBOS and Indo is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PT Indo Boga and Indo Pureco Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Pureco Pratama and PT Indo 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 PT Indo Boga are associated (or correlated) with Indo Pureco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Pureco Pratama has no effect on the direction of PT Indo i.e., PT Indo and Indo Pureco go up and down completely randomly.
Pair Corralation between PT Indo and Indo Pureco
If you would invest 1,400 in Indo Pureco Pratama on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Indo Pureco Pratama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PT Indo Boga vs. Indo Pureco Pratama
Performance |
| Timeline |
| PT Indo Boga |
| Indo Pureco Pratama |
PT Indo and Indo Pureco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indo and Indo Pureco
The main advantage of trading using opposite PT Indo and Indo Pureco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indo position performs unexpectedly, Indo Pureco 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 Indo Pureco will offset losses from the drop in Indo Pureco's long position.| PT Indo vs. Indo Pureco Pratama | PT Indo vs. Champ Resto Indonesia | PT Indo vs. Bintang Samudera Mandiri | PT Indo vs. Autopedia Sukses Lestari |
| Indo Pureco vs. Bank Central Asia | Indo Pureco vs. Bank Rakyat Indonesia | Indo Pureco vs. Bayan Resources Tbk | Indo Pureco vs. Bank Mandiri Persero |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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