Correlation Between Inocycle Technology and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Inocycle Technology and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Citatah Tbk.
Diversification Opportunities for Inocycle Technology and Citatah Tbk
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inocycle and Citatah is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Citatah Tbk go up and down completely randomly.
Pair Corralation between Inocycle Technology and Citatah Tbk
Assuming the 90 days trading horizon Inocycle Technology is expected to generate 1.77 times less return on investment than Citatah Tbk. In addition to that, Inocycle Technology is 1.31 times more volatile than Citatah Tbk. It trades about 0.06 of its total potential returns per unit of risk. Citatah Tbk is currently generating about 0.14 per unit of volatility. If you would invest 1,400 in Citatah Tbk on September 2, 2024 and sell it today you would earn a total of 1,100 from holding Citatah Tbk or generate 78.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Citatah Tbk
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Citatah Tbk |
Inocycle Technology and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Citatah Tbk
The main advantage of trading using opposite Inocycle Technology and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk'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 |
| Citatah Tbk vs. PT Charlie Hospital | Citatah Tbk vs. Diamond Food Indonesia | Citatah Tbk vs. Siloam International Hospitals | Citatah Tbk vs. FKS Food Sejahtera |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |