Correlation Between Indosat Tbk and Trisula Textile
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Trisula Textile 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 Trisula Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Trisula Textile Industries, you can compare the effects of market volatilities on Indosat Tbk and Trisula Textile 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 Trisula Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Trisula Textile.
Diversification Opportunities for Indosat Tbk and Trisula Textile
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indosat and Trisula is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Trisula Textile Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula Textile Indu 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 Trisula Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula Textile Indu has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Trisula Textile go up and down completely randomly.
Pair Corralation between Indosat Tbk and Trisula Textile
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Trisula Textile. In addition to that, Indosat Tbk is 1.04 times more volatile than Trisula Textile Industries. It trades about -0.04 of its total potential returns per unit of risk. Trisula Textile Industries is currently generating about -0.02 per unit of volatility. If you would invest 11,532 in Trisula Textile Industries on September 12, 2024 and sell it today you would lose (5,332) from holding Trisula Textile Industries or give up 46.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Trisula Textile Industries
Performance |
| Timeline |
| Indosat Tbk |
| Trisula Textile Indu |
Indosat Tbk and Trisula Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Trisula Textile
The main advantage of trading using opposite Indosat Tbk and Trisula Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Trisula Textile 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 Trisula Textile will offset losses from the drop in Trisula Textile'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 |
| Trisula Textile vs. Pembangunan Graha Lestari | Trisula Textile vs. Pembangunan Jaya Ancol | Trisula Textile vs. Hotel Sahid Jaya | Trisula Textile vs. Mitrabara Adiperdana PT |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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