Correlation Between Indosat Tbk and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Imago Mulia 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 Imago Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Imago Mulia Persada, you can compare the effects of market volatilities on Indosat Tbk and Imago Mulia 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 Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Imago Mulia.
Diversification Opportunities for Indosat Tbk and Imago Mulia
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Indosat and Imago is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada 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 Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Imago Mulia go up and down completely randomly.
Pair Corralation between Indosat Tbk and Imago Mulia
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Imago Mulia. But the stock apears to be less risky and, when comparing its historical volatility, Indosat Tbk is 1.41 times less risky than Imago Mulia. The stock trades about 0.0 of its potential returns per unit of risk. The Imago Mulia Persada is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,400 in Imago Mulia Persada on September 4, 2024 and sell it today you would earn a total of 200.00 from holding Imago Mulia Persada or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Imago Mulia Persada
Performance |
| Timeline |
| Indosat Tbk |
| Imago Mulia Persada |
Indosat Tbk and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Imago Mulia
The main advantage of trading using opposite Indosat Tbk and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia'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 |
| Imago Mulia vs. Mitra Pinasthika Mustika | Imago Mulia vs. Jakarta Int Hotels | Imago Mulia vs. Indosat Tbk | Imago Mulia vs. Inocycle Technology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |