Correlation Between Indosat Tbk and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Hotel Sahid 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 Hotel Sahid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Hotel Sahid Jaya, you can compare the effects of market volatilities on Indosat Tbk and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Hotel Sahid.
Diversification Opportunities for Indosat Tbk and Hotel Sahid
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Indosat and Hotel is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Hotel Sahid go up and down completely randomly.
Pair Corralation between Indosat Tbk and Hotel Sahid
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 1.01 times more return on investment than Hotel Sahid. However, Indosat Tbk is 1.01 times more volatile than Hotel Sahid Jaya. It trades about 0.18 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about 0.02 per unit of risk. If you would invest 219,000 in Indosat Tbk on August 27, 2024 and sell it today you would earn a total of 32,000 from holding Indosat Tbk or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Indosat Tbk |
| Hotel Sahid Jaya |
Indosat Tbk and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Hotel Sahid
The main advantage of trading using opposite Indosat Tbk and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid's long position.| Indosat Tbk vs. Mnc Land Tbk | Indosat Tbk vs. MNC Vision Networks | Indosat Tbk vs. Medikaloka Hermina PT |
| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |