Correlation Between Indonesia Fibreboard and Sinergi Inti
Can any of the company-specific risk be diversified away by investing in both Indonesia Fibreboard and Sinergi Inti 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 Indonesia Fibreboard and Sinergi Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indonesia Fibreboard Industry and Sinergi Inti Plastindo, you can compare the effects of market volatilities on Indonesia Fibreboard and Sinergi Inti 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 Indonesia Fibreboard with a short position of Sinergi Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indonesia Fibreboard and Sinergi Inti.
Diversification Opportunities for Indonesia Fibreboard and Sinergi Inti
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indonesia and Sinergi is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Indonesia Fibreboard Industry and Sinergi Inti Plastindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinergi Inti Plastindo and Indonesia Fibreboard 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 Indonesia Fibreboard Industry are associated (or correlated) with Sinergi Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinergi Inti Plastindo has no effect on the direction of Indonesia Fibreboard i.e., Indonesia Fibreboard and Sinergi Inti go up and down completely randomly.
Pair Corralation between Indonesia Fibreboard and Sinergi Inti
Assuming the 90 days trading horizon Indonesia Fibreboard Industry is expected to generate 1.21 times more return on investment than Sinergi Inti. However, Indonesia Fibreboard is 1.21 times more volatile than Sinergi Inti Plastindo. It trades about 0.11 of its potential returns per unit of risk. Sinergi Inti Plastindo is currently generating about -0.06 per unit of risk. If you would invest 19,900 in Indonesia Fibreboard Industry on September 14, 2024 and sell it today you would earn a total of 1,300 from holding Indonesia Fibreboard Industry or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indonesia Fibreboard Industry vs. Sinergi Inti Plastindo
Performance |
| Timeline |
| Indonesia Fibreboard |
| Sinergi Inti Plastindo |
Indonesia Fibreboard and Sinergi Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indonesia Fibreboard and Sinergi Inti
The main advantage of trading using opposite Indonesia Fibreboard and Sinergi Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indonesia Fibreboard position performs unexpectedly, Sinergi Inti 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 Sinergi Inti will offset losses from the drop in Sinergi Inti's long position.| Indonesia Fibreboard vs. Gunung Raja Paksi | Indonesia Fibreboard vs. Satyamitra Kemas Lestari | Indonesia Fibreboard vs. Ifishdeco PT | Indonesia Fibreboard vs. Saraswanti Anugerah Makmur |
| Sinergi Inti vs. Lotte Chemical Titan | Sinergi Inti vs. Agro Yasa Lestari | Sinergi Inti vs. Era Mandiri Cemerlang | Sinergi Inti vs. Jasnita Telekomindo 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |