Correlation Between Indosat Tbk and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Asia Pacific 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 Asia Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Asia Pacific Investama, you can compare the effects of market volatilities on Indosat Tbk and Asia Pacific 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 Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Asia Pacific.
Diversification Opportunities for Indosat Tbk and Asia Pacific
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indosat and Asia is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama 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 Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Asia Pacific go up and down completely randomly.
Pair Corralation between Indosat Tbk and Asia Pacific
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 0.97 times more return on investment than Asia Pacific. However, Indosat Tbk is 1.03 times less risky than Asia Pacific. It trades about 0.0 of its potential returns per unit of risk. Asia Pacific Investama is currently generating about 0.0 per unit of risk. If you would invest 520,158 in Indosat Tbk on September 5, 2024 and sell it today you would lose (268,158) from holding Indosat Tbk or give up 51.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Indosat Tbk vs. Asia Pacific Investama
Performance |
| Timeline |
| Indosat Tbk |
| Asia Pacific Investama |
Indosat Tbk and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Asia Pacific
The main advantage of trading using opposite Indosat Tbk and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific'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 |
| Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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