Correlation Between Inti Bangun and Ictsi Jasa
Can any of the company-specific risk be diversified away by investing in both Inti Bangun and Ictsi Jasa 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 Inti Bangun and Ictsi Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inti Bangun Sejahtera and Ictsi Jasa Prima, you can compare the effects of market volatilities on Inti Bangun and Ictsi Jasa 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 Inti Bangun with a short position of Ictsi Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inti Bangun and Ictsi Jasa.
Diversification Opportunities for Inti Bangun and Ictsi Jasa
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inti and Ictsi is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Inti Bangun Sejahtera and Ictsi Jasa Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ictsi Jasa Prima and Inti Bangun 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 Inti Bangun Sejahtera are associated (or correlated) with Ictsi Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ictsi Jasa Prima has no effect on the direction of Inti Bangun i.e., Inti Bangun and Ictsi Jasa go up and down completely randomly.
Pair Corralation between Inti Bangun and Ictsi Jasa
Assuming the 90 days trading horizon Inti Bangun is expected to generate 147.13 times less return on investment than Ictsi Jasa. But when comparing it to its historical volatility, Inti Bangun Sejahtera is 2.48 times less risky than Ictsi Jasa. It trades about 0.0 of its potential returns per unit of risk. Ictsi Jasa Prima is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,000 in Ictsi Jasa Prima on November 28, 2024 and sell it today you would earn a total of 98,500 from holding Ictsi Jasa Prima or generate 1641.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inti Bangun Sejahtera vs. Ictsi Jasa Prima
Performance |
| Timeline |
| Inti Bangun Sejahtera |
| Ictsi Jasa Prima |
Inti Bangun and Ictsi Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inti Bangun and Ictsi Jasa
The main advantage of trading using opposite Inti Bangun and Ictsi Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inti Bangun position performs unexpectedly, Ictsi Jasa 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 Ictsi Jasa will offset losses from the drop in Ictsi Jasa's long position.| Inti Bangun vs. Bali Towerindo Sentra | Inti Bangun vs. Dian Swastatika Sentosa | Inti Bangun vs. Humpuss Intermoda Transportasi | Inti Bangun vs. Solusi Tunas Pratama |
| Ictsi Jasa vs. Kabelindo Murni Tbk | Ictsi Jasa vs. Jembo Cable | Ictsi Jasa vs. Kedaung Indah Can | Ictsi Jasa vs. Kedawung Setia Industrial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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