Correlation Between Indospring Tbk and Ever Shine
Can any of the company-specific risk be diversified away by investing in both Indospring Tbk and Ever Shine 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 Indospring Tbk and Ever Shine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indospring Tbk and Ever Shine Textile, you can compare the effects of market volatilities on Indospring Tbk and Ever Shine 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 Indospring Tbk with a short position of Ever Shine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indospring Tbk and Ever Shine.
Diversification Opportunities for Indospring Tbk and Ever Shine
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indospring and Ever is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Indospring Tbk and Ever Shine Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Shine Textile and Indospring Tbk 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 Indospring Tbk are associated (or correlated) with Ever Shine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Shine Textile has no effect on the direction of Indospring Tbk i.e., Indospring Tbk and Ever Shine go up and down completely randomly.
Pair Corralation between Indospring Tbk and Ever Shine
Assuming the 90 days trading horizon Indospring Tbk is expected to generate 0.93 times more return on investment than Ever Shine. However, Indospring Tbk is 1.08 times less risky than Ever Shine. It trades about 0.04 of its potential returns per unit of risk. Ever Shine Textile is currently generating about 0.01 per unit of risk. If you would invest 22,564 in Indospring Tbk on August 25, 2024 and sell it today you would earn a total of 2,836 from holding Indospring Tbk or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
Indospring Tbk vs. Ever Shine Textile
Performance |
| Timeline |
| Indospring Tbk |
| Ever Shine Textile |
Indospring Tbk and Ever Shine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indospring Tbk and Ever Shine
The main advantage of trading using opposite Indospring Tbk and Ever Shine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indospring Tbk position performs unexpectedly, Ever Shine 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 Ever Shine will offset losses from the drop in Ever Shine's long position.| Indospring Tbk vs. Indomobil Sukses Internasional | Indospring Tbk vs. Goodyear Indonesia Tbk | Indospring Tbk vs. Indorama Synthetics Tbk | Indospring Tbk vs. Astra Otoparts Tbk |
| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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