Correlation Between Inter Delta and Intraco Penta
Can any of the company-specific risk be diversified away by investing in both Inter Delta and Intraco Penta 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 Intraco Penta 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 Intraco Penta Tbk, you can compare the effects of market volatilities on Inter Delta and Intraco Penta 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 Intraco Penta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Delta and Intraco Penta.
Diversification Opportunities for Inter Delta and Intraco Penta
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inter and Intraco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Inter Delta Tbk and Intraco Penta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intraco Penta Tbk 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 Intraco Penta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intraco Penta Tbk has no effect on the direction of Inter Delta i.e., Inter Delta and Intraco Penta go up and down completely randomly.
Pair Corralation between Inter Delta and Intraco Penta
Assuming the 90 days trading horizon Inter Delta Tbk is expected to generate 1.37 times more return on investment than Intraco Penta. However, Inter Delta is 1.37 times more volatile than Intraco Penta Tbk. It trades about 0.01 of its potential returns per unit of risk. Intraco Penta Tbk is currently generating about -0.09 per unit of risk. If you would invest 19,700 in Inter Delta Tbk on August 30, 2024 and sell it today you would lose (1,100) from holding Inter Delta Tbk or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Delta Tbk vs. Intraco Penta Tbk
Performance |
| Timeline |
| Inter Delta Tbk |
| Intraco Penta Tbk |
Inter Delta and Intraco Penta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Delta and Intraco Penta
The main advantage of trading using opposite Inter Delta and Intraco Penta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Delta position performs unexpectedly, Intraco Penta 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 Intraco Penta will offset losses from the drop in Intraco Penta'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 |
| Intraco Penta vs. Indonesian Tobacco Tbk | Intraco Penta vs. Ashmore Asset Management | Intraco Penta vs. Communication Cable Systems | Intraco Penta vs. First Media 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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