Correlation Between Indosat Tbk and PT Sunter
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and PT Sunter 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 PT Sunter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and PT Sunter Lakeside, you can compare the effects of market volatilities on Indosat Tbk and PT Sunter 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 PT Sunter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and PT Sunter.
Diversification Opportunities for Indosat Tbk and PT Sunter
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indosat and SNLK is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and PT Sunter Lakeside in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Sunter Lakeside 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 PT Sunter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Sunter Lakeside has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and PT Sunter go up and down completely randomly.
Pair Corralation between Indosat Tbk and PT Sunter
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 1.2 times more return on investment than PT Sunter. However, Indosat Tbk is 1.2 times more volatile than PT Sunter Lakeside. It trades about 0.07 of its potential returns per unit of risk. PT Sunter Lakeside is currently generating about -0.04 per unit of risk. If you would invest 241,000 in Indosat Tbk on September 5, 2024 and sell it today you would earn a total of 11,000 from holding Indosat Tbk or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. PT Sunter Lakeside
Performance |
| Timeline |
| Indosat Tbk |
| PT Sunter Lakeside |
Indosat Tbk and PT Sunter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and PT Sunter
The main advantage of trading using opposite Indosat Tbk and PT Sunter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, PT Sunter 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 PT Sunter will offset losses from the drop in PT Sunter'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 |
| PT Sunter vs. Campina Ice Cream | PT Sunter vs. Mitra Pinasthika Mustika | PT Sunter vs. Jakarta Int Hotels | PT Sunter 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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