Correlation Between Intanwijaya Internasional and Grand Kartech
Can any of the company-specific risk be diversified away by investing in both Intanwijaya Internasional and Grand Kartech 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 Intanwijaya Internasional and Grand Kartech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intanwijaya Internasional Tbk and Grand Kartech Tbk, you can compare the effects of market volatilities on Intanwijaya Internasional and Grand Kartech 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 Intanwijaya Internasional with a short position of Grand Kartech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intanwijaya Internasional and Grand Kartech.
Diversification Opportunities for Intanwijaya Internasional and Grand Kartech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intanwijaya and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intanwijaya Internasional Tbk and Grand Kartech Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Kartech Tbk and Intanwijaya Internasional 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 Intanwijaya Internasional Tbk are associated (or correlated) with Grand Kartech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Kartech Tbk has no effect on the direction of Intanwijaya Internasional i.e., Intanwijaya Internasional and Grand Kartech go up and down completely randomly.
Pair Corralation between Intanwijaya Internasional and Grand Kartech
If you would invest 50,952 in Intanwijaya Internasional Tbk on September 4, 2024 and sell it today you would earn a total of 6,548 from holding Intanwijaya Internasional Tbk or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Intanwijaya Internasional Tbk vs. Grand Kartech Tbk
Performance |
| Timeline |
| Intanwijaya Internasional |
| Grand Kartech Tbk |
Intanwijaya Internasional and Grand Kartech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intanwijaya Internasional and Grand Kartech
The main advantage of trading using opposite Intanwijaya Internasional and Grand Kartech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intanwijaya Internasional position performs unexpectedly, Grand Kartech 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 Grand Kartech will offset losses from the drop in Grand Kartech's long position.The idea behind Intanwijaya Internasional Tbk and Grand Kartech Tbk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Grand Kartech vs. Intanwijaya Internasional Tbk | Grand Kartech vs. Champion Pacific Indonesia | Grand Kartech vs. Mitra Pinasthika Mustika | Grand Kartech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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