Correlation Between Indosat Tbk and Inti Bangun
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Inti Bangun 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 Inti Bangun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Inti Bangun Sejahtera, you can compare the effects of market volatilities on Indosat Tbk and Inti Bangun 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 Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Inti Bangun.
Diversification Opportunities for Indosat Tbk and Inti Bangun
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indosat and Inti is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Inti Bangun Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inti Bangun Sejahtera 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 Inti Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inti Bangun Sejahtera has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Inti Bangun go up and down completely randomly.
Pair Corralation between Indosat Tbk and Inti Bangun
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 1.34 times more return on investment than Inti Bangun. However, Indosat Tbk is 1.34 times more volatile than Inti Bangun Sejahtera. It trades about 0.24 of its potential returns per unit of risk. Inti Bangun Sejahtera is currently generating about -0.01 per unit of risk. If you would invest 214,000 in Indosat Tbk on September 12, 2024 and sell it today you would earn a total of 35,000 from holding Indosat Tbk or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Indosat Tbk vs. Inti Bangun Sejahtera
Performance |
| Timeline |
| Indosat Tbk |
| Inti Bangun Sejahtera |
Indosat Tbk and Inti Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Inti Bangun
The main advantage of trading using opposite Indosat Tbk and Inti Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Inti Bangun 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 Inti Bangun will offset losses from the drop in Inti Bangun'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 |
| Inti Bangun vs. Mnc Land Tbk | Inti Bangun vs. MNC Vision Networks | Inti Bangun vs. MD Pictures Tbk | Inti Bangun vs. Link Net 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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