Correlation Between Indosat Tbk and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Sumber Tani 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 Sumber Tani into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Sumber Tani Agung, you can compare the effects of market volatilities on Indosat Tbk and Sumber Tani 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 Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Sumber Tani.
Diversification Opportunities for Indosat Tbk and Sumber Tani
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indosat and Sumber is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung 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 Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Sumber Tani go up and down completely randomly.
Pair Corralation between Indosat Tbk and Sumber Tani
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Sumber Tani. In addition to that, Indosat Tbk is 1.7 times more volatile than Sumber Tani Agung. It trades about -0.14 of its total potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.09 per unit of volatility. If you would invest 82,000 in Sumber Tani Agung on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Sumber Tani Agung or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Sumber Tani Agung
Performance |
| Timeline |
| Indosat Tbk |
| Sumber Tani Agung |
Indosat Tbk and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Sumber Tani
The main advantage of trading using opposite Indosat Tbk and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani'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 |
| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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