Correlation Between Inocycle Technology and Citra Borneo
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Citra Borneo 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 Citra Borneo 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 Citra Borneo Utama, you can compare the effects of market volatilities on Inocycle Technology and Citra Borneo 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 Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Citra Borneo.
Diversification Opportunities for Inocycle Technology and Citra Borneo
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inocycle and Citra is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama 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 Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Citra Borneo go up and down completely randomly.
Pair Corralation between Inocycle Technology and Citra Borneo
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to generate 1.29 times more return on investment than Citra Borneo. However, Inocycle Technology is 1.29 times more volatile than Citra Borneo Utama. It trades about 0.04 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about -0.13 per unit of risk. If you would invest 9,500 in Inocycle Technology Tbk on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Inocycle Technology Tbk or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Citra Borneo Utama
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Citra Borneo Utama |
Inocycle Technology and Citra Borneo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Citra Borneo
The main advantage of trading using opposite Inocycle Technology and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Citra Borneo 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 Citra Borneo will offset losses from the drop in Citra Borneo'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 |
| Citra Borneo vs. Habco Trans Maritima | Citra Borneo vs. PT Cilacap Samudera | Citra Borneo vs. PT Sari Kreasi | Citra Borneo vs. Autopedia Sukses Lestari |
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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