Correlation Between Inti Bangun and PT Sarana
Can any of the company-specific risk be diversified away by investing in both Inti Bangun and PT Sarana 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 PT Sarana 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 PT Sarana Menara, you can compare the effects of market volatilities on Inti Bangun and PT Sarana 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 PT Sarana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inti Bangun and PT Sarana.
Diversification Opportunities for Inti Bangun and PT Sarana
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inti and TOWR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Inti Bangun Sejahtera and PT Sarana Menara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sarana Menara 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 PT Sarana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sarana Menara has no effect on the direction of Inti Bangun i.e., Inti Bangun and PT Sarana go up and down completely randomly.
Pair Corralation between Inti Bangun and PT Sarana
Assuming the 90 days trading horizon Inti Bangun Sejahtera is expected to generate 1.14 times more return on investment than PT Sarana. However, Inti Bangun is 1.14 times more volatile than PT Sarana Menara. It trades about 0.0 of its potential returns per unit of risk. PT Sarana Menara is currently generating about -0.04 per unit of risk. If you would invest 595,000 in Inti Bangun Sejahtera on September 4, 2024 and sell it today you would lose (75,000) from holding Inti Bangun Sejahtera or give up 12.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inti Bangun Sejahtera vs. PT Sarana Menara
Performance |
| Timeline |
| Inti Bangun Sejahtera |
| PT Sarana Menara |
Inti Bangun and PT Sarana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inti Bangun and PT Sarana
The main advantage of trading using opposite Inti Bangun and PT Sarana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inti Bangun position performs unexpectedly, PT Sarana 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 PT Sarana will offset losses from the drop in PT Sarana's long position.| Inti Bangun vs. Energi Mega Persada | Inti Bangun vs. Mitra Pinasthika Mustika | Inti Bangun vs. Jakarta Int Hotels | Inti Bangun vs. Indosat Tbk |
| PT Sarana vs. Energi Mega Persada | PT Sarana vs. Mitra Pinasthika Mustika | PT Sarana vs. Jakarta Int Hotels | PT Sarana vs. Indosat 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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