Correlation Between Ifishdeco and Steel Pipe
Can any of the company-specific risk be diversified away by investing in both Ifishdeco and Steel Pipe 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 Ifishdeco and Steel Pipe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ifishdeco PT and Steel Pipe Industry, you can compare the effects of market volatilities on Ifishdeco and Steel Pipe 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 Ifishdeco with a short position of Steel Pipe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ifishdeco and Steel Pipe.
Diversification Opportunities for Ifishdeco and Steel Pipe
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ifishdeco and Steel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ifishdeco PT and Steel Pipe Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Pipe Industry and Ifishdeco 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 Ifishdeco PT are associated (or correlated) with Steel Pipe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Pipe Industry has no effect on the direction of Ifishdeco i.e., Ifishdeco and Steel Pipe go up and down completely randomly.
Pair Corralation between Ifishdeco and Steel Pipe
Assuming the 90 days trading horizon Ifishdeco is expected to generate 5.15 times less return on investment than Steel Pipe. In addition to that, Ifishdeco is 2.01 times more volatile than Steel Pipe Industry. It trades about 0.0 of its total potential returns per unit of risk. Steel Pipe Industry is currently generating about 0.03 per unit of volatility. If you would invest 23,419 in Steel Pipe Industry on September 3, 2024 and sell it today you would earn a total of 4,981 from holding Steel Pipe Industry or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ifishdeco PT vs. Steel Pipe Industry
Performance |
| Timeline |
| Ifishdeco PT |
| Steel Pipe Industry |
Ifishdeco and Steel Pipe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ifishdeco and Steel Pipe
The main advantage of trading using opposite Ifishdeco and Steel Pipe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ifishdeco position performs unexpectedly, Steel Pipe 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 Steel Pipe will offset losses from the drop in Steel Pipe's long position.| Ifishdeco vs. Gunung Raja Paksi | Ifishdeco vs. Cita Mineral Investindo | Ifishdeco vs. Central Omega Resources | Ifishdeco vs. Indonesia Fibreboard Industry |
| Steel Pipe vs. Timah Persero Tbk | Steel Pipe vs. Semen Indonesia Persero | Steel Pipe vs. Mitra Pinasthika Mustika | Steel Pipe vs. Jakarta Int Hotels |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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