Correlation Between Intanwijaya Internasional and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Intanwijaya Internasional and PP Presisi 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 PP Presisi 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 PP Presisi Tbk, you can compare the effects of market volatilities on Intanwijaya Internasional and PP Presisi 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 PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intanwijaya Internasional and PP Presisi.
Diversification Opportunities for Intanwijaya Internasional and PP Presisi
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intanwijaya and PPRE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Intanwijaya Internasional Tbk and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi 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 PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Intanwijaya Internasional i.e., Intanwijaya Internasional and PP Presisi go up and down completely randomly.
Pair Corralation between Intanwijaya Internasional and PP Presisi
Assuming the 90 days trading horizon Intanwijaya Internasional Tbk is expected to generate 0.58 times more return on investment than PP Presisi. However, Intanwijaya Internasional Tbk is 1.71 times less risky than PP Presisi. It trades about 0.0 of its potential returns per unit of risk. PP Presisi Tbk is currently generating about -0.03 per unit of risk. If you would invest 60,597 in Intanwijaya Internasional Tbk on September 4, 2024 and sell it today you would lose (3,097) from holding Intanwijaya Internasional Tbk or give up 5.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Intanwijaya Internasional Tbk vs. PP Presisi Tbk
Performance |
| Timeline |
| Intanwijaya Internasional |
| PP Presisi Tbk |
Intanwijaya Internasional and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intanwijaya Internasional and PP Presisi
The main advantage of trading using opposite Intanwijaya Internasional and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intanwijaya Internasional position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi's long position.The idea behind Intanwijaya Internasional Tbk and PP Presisi 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.
| PP Presisi vs. Wijaya Karya Bangunan | PP Presisi vs. PP Properti Tbk | PP Presisi vs. Wijaya Karya Beton | PP Presisi vs. Soechi Lines 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |