Correlation Between Indosat Tbk and Eastparc Hotel
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Eastparc Hotel 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 Eastparc Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Eastparc Hotel Tbk, you can compare the effects of market volatilities on Indosat Tbk and Eastparc Hotel 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 Eastparc Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Eastparc Hotel.
Diversification Opportunities for Indosat Tbk and Eastparc Hotel
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indosat and Eastparc is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Eastparc Hotel Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastparc Hotel Tbk 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 Eastparc Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastparc Hotel Tbk has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Eastparc Hotel go up and down completely randomly.
Pair Corralation between Indosat Tbk and Eastparc Hotel
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Eastparc Hotel. In addition to that, Indosat Tbk is 2.4 times more volatile than Eastparc Hotel Tbk. It trades about -0.03 of its total potential returns per unit of risk. Eastparc Hotel Tbk is currently generating about 0.0 per unit of volatility. If you would invest 11,094 in Eastparc Hotel Tbk on September 4, 2024 and sell it today you would lose (494.00) from holding Eastparc Hotel Tbk or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Indosat Tbk vs. Eastparc Hotel Tbk
Performance |
| Timeline |
| Indosat Tbk |
| Eastparc Hotel Tbk |
Indosat Tbk and Eastparc Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Eastparc Hotel
The main advantage of trading using opposite Indosat Tbk and Eastparc Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Eastparc Hotel 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 Eastparc Hotel will offset losses from the drop in Eastparc Hotel's long position.| Indosat Tbk vs. Energi Mega Persada | Indosat Tbk vs. Mitra Pinasthika Mustika | Indosat Tbk vs. Jakarta Int Hotels | Indosat Tbk vs. Inocycle Technology Tbk |
| Eastparc Hotel vs. Campina Ice Cream | Eastparc Hotel vs. Mitra Pinasthika Mustika | Eastparc Hotel vs. Jakarta Int Hotels | Eastparc Hotel vs. Indosat 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |