Correlation Between Inocycle Technology and Global Mediacom
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Global Mediacom 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 Inocycle Technology and Global Mediacom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inocycle Technology Tbk and Global Mediacom Tbk, you can compare the effects of market volatilities on Inocycle Technology and Global Mediacom 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 Inocycle Technology with a short position of Global Mediacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Global Mediacom.
Diversification Opportunities for Inocycle Technology and Global Mediacom
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inocycle and Global is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Global Mediacom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mediacom Tbk and Inocycle Technology 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 Inocycle Technology Tbk are associated (or correlated) with Global Mediacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mediacom Tbk has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Global Mediacom go up and down completely randomly.
Pair Corralation between Inocycle Technology and Global Mediacom
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to generate 1.89 times more return on investment than Global Mediacom. However, Inocycle Technology is 1.89 times more volatile than Global Mediacom Tbk. It trades about 0.0 of its potential returns per unit of risk. Global Mediacom Tbk is currently generating about -0.03 per unit of risk. If you would invest 13,400 in Inocycle Technology Tbk on September 2, 2024 and sell it today you would lose (3,400) from holding Inocycle Technology Tbk or give up 25.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Global Mediacom Tbk
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Global Mediacom Tbk |
Inocycle Technology and Global Mediacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Global Mediacom
The main advantage of trading using opposite Inocycle Technology and Global Mediacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Global Mediacom 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 Global Mediacom will offset losses from the drop in Global Mediacom's long position.| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
| Global Mediacom vs. Indosat Tbk | Global Mediacom vs. XL Axiata Tbk | Global Mediacom vs. Energi Mega Persada | Global Mediacom vs. Bakrie Brothers 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |