Correlation Between Inocycle Technology and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Inocycle Technology and Imago Mulia 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 Imago Mulia 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 Imago Mulia Persada, you can compare the effects of market volatilities on Inocycle Technology and Imago Mulia 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 Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inocycle Technology and Imago Mulia.
Diversification Opportunities for Inocycle Technology and Imago Mulia
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inocycle and Imago is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Inocycle Technology Tbk and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada 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 Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Inocycle Technology i.e., Inocycle Technology and Imago Mulia go up and down completely randomly.
Pair Corralation between Inocycle Technology and Imago Mulia
Assuming the 90 days trading horizon Inocycle Technology Tbk is expected to under-perform the Imago Mulia. But the stock apears to be less risky and, when comparing its historical volatility, Inocycle Technology Tbk is 2.86 times less risky than Imago Mulia. The stock trades about -0.21 of its potential returns per unit of risk. The Imago Mulia Persada is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,400 in Imago Mulia Persada on September 4, 2024 and sell it today you would earn a total of 200.00 from holding Imago Mulia Persada or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inocycle Technology Tbk vs. Imago Mulia Persada
Performance |
| Timeline |
| Inocycle Technology Tbk |
| Imago Mulia Persada |
Inocycle Technology and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inocycle Technology and Imago Mulia
The main advantage of trading using opposite Inocycle Technology and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inocycle Technology position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia'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 |
| Imago Mulia vs. Mitra Pinasthika Mustika | Imago Mulia vs. Jakarta Int Hotels | Imago Mulia vs. Indosat Tbk | Imago Mulia vs. Inocycle Technology 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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