Correlation Between Indosat Tbk and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Maming Enam 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 Indosat Tbk and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Maming Enam Sembilan, you can compare the effects of market volatilities on Indosat Tbk and Maming Enam 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 Indosat Tbk with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Maming Enam.
Diversification Opportunities for Indosat Tbk and Maming Enam
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indosat and Maming is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Indosat Tbk 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 Indosat Tbk are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Maming Enam go up and down completely randomly.
Pair Corralation between Indosat Tbk and Maming Enam
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Maming Enam. But the stock apears to be less risky and, when comparing its historical volatility, Indosat Tbk is 1.27 times less risky than Maming Enam. The stock trades about -0.08 of its potential returns per unit of risk. The Maming Enam Sembilan is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 11,300 in Maming Enam Sembilan on September 1, 2024 and sell it today you would earn a total of 27,500 from holding Maming Enam Sembilan or generate 243.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Indosat Tbk vs. Maming Enam Sembilan
Performance |
| Timeline |
| Indosat Tbk |
| Maming Enam Sembilan |
Indosat Tbk and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Maming Enam
The main advantage of trading using opposite Indosat Tbk and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Indosat Tbk vs. Astra Agro Lestari | Indosat Tbk vs. Vale Indonesia Tbk | Indosat Tbk vs. Timah Persero Tbk | Indosat Tbk vs. Medco Energi Internasional |
| Maming Enam vs. Bank BRISyariah Tbk | Maming Enam vs. Ace Hardware Indonesia | Maming Enam vs. Merdeka Copper Gold | Maming Enam vs. Mitra Pinasthika Mustika |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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