Correlation Between Indosat Tbk and Trisula International
Can any of the company-specific risk be diversified away by investing in both Indosat Tbk and Trisula International 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 Trisula International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosat Tbk and Trisula International Tbk, you can compare the effects of market volatilities on Indosat Tbk and Trisula International 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 Trisula International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosat Tbk and Trisula International.
Diversification Opportunities for Indosat Tbk and Trisula International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Indosat and Trisula is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Indosat Tbk and Trisula International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula International 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 Trisula International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula International Tbk has no effect on the direction of Indosat Tbk i.e., Indosat Tbk and Trisula International go up and down completely randomly.
Pair Corralation between Indosat Tbk and Trisula International
Assuming the 90 days trading horizon Indosat Tbk is expected to generate 1.69 times more return on investment than Trisula International. However, Indosat Tbk is 1.69 times more volatile than Trisula International Tbk. It trades about 0.21 of its potential returns per unit of risk. Trisula International Tbk is currently generating about 0.1 per unit of risk. If you would invest 220,000 in Indosat Tbk on September 13, 2024 and sell it today you would earn a total of 29,000 from holding Indosat Tbk or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosat Tbk vs. Trisula International Tbk
Performance |
| Timeline |
| Indosat Tbk |
| Trisula International Tbk |
Indosat Tbk and Trisula International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosat Tbk and Trisula International
The main advantage of trading using opposite Indosat Tbk and Trisula International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosat Tbk position performs unexpectedly, Trisula International 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 Trisula International will offset losses from the drop in Trisula International's long position.| Indosat Tbk vs. Mnc Land Tbk | Indosat Tbk vs. MNC Vision Networks | Indosat Tbk vs. MD Pictures Tbk | Indosat Tbk vs. Link Net Tbk |
| Trisula International vs. Pembangunan Graha Lestari | Trisula International vs. Pembangunan Jaya Ancol | Trisula International vs. Hotel Sahid Jaya | Trisula International vs. Mitrabara Adiperdana PT |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |