Correlation Between Inter Delta and Indal Aluminium
Can any of the company-specific risk be diversified away by investing in both Inter Delta and Indal Aluminium 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 Inter Delta and Indal Aluminium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Delta Tbk and Indal Aluminium Industry, you can compare the effects of market volatilities on Inter Delta and Indal Aluminium 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 Inter Delta with a short position of Indal Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Delta and Indal Aluminium.
Diversification Opportunities for Inter Delta and Indal Aluminium
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inter and Indal is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Inter Delta Tbk and Indal Aluminium Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indal Aluminium Industry and Inter Delta 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 Inter Delta Tbk are associated (or correlated) with Indal Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indal Aluminium Industry has no effect on the direction of Inter Delta i.e., Inter Delta and Indal Aluminium go up and down completely randomly.
Pair Corralation between Inter Delta and Indal Aluminium
Assuming the 90 days trading horizon Inter Delta Tbk is expected to generate 2.16 times more return on investment than Indal Aluminium. However, Inter Delta is 2.16 times more volatile than Indal Aluminium Industry. It trades about 0.03 of its potential returns per unit of risk. Indal Aluminium Industry is currently generating about -0.04 per unit of risk. If you would invest 15,600 in Inter Delta Tbk on August 30, 2024 and sell it today you would earn a total of 3,000 from holding Inter Delta Tbk or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Delta Tbk vs. Indal Aluminium Industry
Performance |
| Timeline |
| Inter Delta Tbk |
| Indal Aluminium Industry |
Inter Delta and Indal Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Delta and Indal Aluminium
The main advantage of trading using opposite Inter Delta and Indal Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Delta position performs unexpectedly, Indal Aluminium 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 Indal Aluminium will offset losses from the drop in Indal Aluminium's long position.| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana Tbk |
| Indal Aluminium vs. Intanwijaya Internasional Tbk | Indal Aluminium vs. Alumindo Light Metal | Indal Aluminium vs. Champion Pacific Indonesia | Indal Aluminium vs. Betonjaya Manunggal 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |