Correlation Between Indosat Tbk and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Trimegah Securities 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 Trimegah Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Trimegah Securities Tbk, you can compare the effects of market volatilities on Indosat Tbk and Trimegah Securities 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 Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Trimegah Securities.
Diversification Opportunities for Indosat Tbk and Trimegah Securities
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Indosat and Trimegah is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities Tbk 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 Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Trimegah Securities go up and down completely randomly.
Pair Corralation between Indosat Tbk and Trimegah Securities
Assuming the 90 days trading horizon Indosat Tbk is expected to under-perform the Trimegah Securities. In addition to that, Indosat Tbk is 1.19 times more volatile than Trimegah Securities Tbk. It trades about -0.01 of its total potential returns per unit of risk. Trimegah Securities Tbk is currently generating about 0.25 per unit of volatility. If you would invest 28,200 in Trimegah Securities Tbk on September 12, 2024 and sell it today you would earn a total of 9,000 from holding Trimegah Securities Tbk or generate 31.91% 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. Trimegah Securities Tbk
Performance |
| Timeline |
| Indosat Tbk |
| Trimegah Securities Tbk |
Indosat Tbk and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Trimegah Securities
The main advantage of trading using opposite Indosat Tbk and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Trimegah Securities 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 Trimegah Securities will offset losses from the drop in Trimegah Securities' 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 |
| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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