Correlation Between PT Indonesia and Estika Tata
Can any of the company-specific risk be diversified away by investing in both PT Indonesia and Estika Tata 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 PT Indonesia and Estika Tata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indonesia Kendaraan and Estika Tata Tiara, you can compare the effects of market volatilities on PT Indonesia and Estika Tata 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 PT Indonesia with a short position of Estika Tata. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indonesia and Estika Tata.
Diversification Opportunities for PT Indonesia and Estika Tata
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPCC and Estika is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Indonesia Kendaraan and Estika Tata Tiara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Estika Tata Tiara and PT Indonesia 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 PT Indonesia Kendaraan are associated (or correlated) with Estika Tata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Estika Tata Tiara has no effect on the direction of PT Indonesia i.e., PT Indonesia and Estika Tata go up and down completely randomly.
Pair Corralation between PT Indonesia and Estika Tata
Assuming the 90 days trading horizon PT Indonesia Kendaraan is expected to generate 0.46 times more return on investment than Estika Tata. However, PT Indonesia Kendaraan is 2.18 times less risky than Estika Tata. It trades about 0.23 of its potential returns per unit of risk. Estika Tata Tiara is currently generating about -0.27 per unit of risk. If you would invest 71,000 in PT Indonesia Kendaraan on August 30, 2024 and sell it today you would earn a total of 4,000 from holding PT Indonesia Kendaraan or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Indonesia Kendaraan vs. Estika Tata Tiara
Performance |
| Timeline |
| PT Indonesia Kendaraan |
| Estika Tata Tiara |
PT Indonesia and Estika Tata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indonesia and Estika Tata
The main advantage of trading using opposite PT Indonesia and Estika Tata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indonesia position performs unexpectedly, Estika Tata 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 Estika Tata will offset losses from the drop in Estika Tata's long position.| PT Indonesia vs. Jasa Armada Indonesia | PT Indonesia vs. Cikarang Listrindo Tbk | PT Indonesia vs. Mitra Pinasthika Mustika | PT Indonesia vs. Wijaya Karya Bangunan |
| Estika Tata vs. Sentra Food Indonesia | Estika Tata vs. Buyung Poetra Sembada | Estika Tata vs. Garudafood Putra Putri | Estika Tata vs. Campina Ice Cream |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |