Correlation Between Indo Pureco and PT Indo
Can any of the company-specific risk be diversified away by investing in both Indo Pureco and PT Indo 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 Indo Pureco and PT Indo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Pureco Pratama and PT Indo Boga, you can compare the effects of market volatilities on Indo Pureco and PT Indo 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 Indo Pureco with a short position of PT Indo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Pureco and PT Indo.
Diversification Opportunities for Indo Pureco and PT Indo
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and IBOS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Indo Pureco Pratama and PT Indo Boga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indo Boga and Indo Pureco 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 Indo Pureco Pratama are associated (or correlated) with PT Indo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indo Boga has no effect on the direction of Indo Pureco i.e., Indo Pureco and PT Indo go up and down completely randomly.
Pair Corralation between Indo Pureco and PT Indo
If you would invest 1,400 in Indo Pureco Pratama on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Indo Pureco Pratama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
Indo Pureco Pratama vs. PT Indo Boga
Performance |
| Timeline |
| Indo Pureco Pratama |
| PT Indo Boga |
Indo Pureco and PT Indo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Pureco and PT Indo
The main advantage of trading using opposite Indo Pureco and PT Indo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Pureco position performs unexpectedly, PT Indo 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 PT Indo will offset losses from the drop in PT Indo's long position.| Indo Pureco vs. Bank Central Asia | Indo Pureco vs. Bank Rakyat Indonesia | Indo Pureco vs. Bayan Resources Tbk | Indo Pureco vs. Bank Mandiri Persero |
| PT Indo vs. Indo Pureco Pratama | PT Indo vs. Champ Resto Indonesia | PT Indo vs. Bintang Samudera Mandiri | PT Indo vs. Autopedia Sukses Lestari |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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