Correlation Between Intermedia Capital and Pacific Strategic
Can any of the company-specific risk be diversified away by investing in both Intermedia Capital and Pacific Strategic 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 Intermedia Capital and Pacific Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermedia Capital Tbk and Pacific Strategic Financial, you can compare the effects of market volatilities on Intermedia Capital and Pacific Strategic 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 Intermedia Capital with a short position of Pacific Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedia Capital and Pacific Strategic.
Diversification Opportunities for Intermedia Capital and Pacific Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermedia and Pacific is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermedia Capital Tbk and Pacific Strategic Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Strategic and Intermedia Capital 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 Intermedia Capital Tbk are associated (or correlated) with Pacific Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Strategic has no effect on the direction of Intermedia Capital i.e., Intermedia Capital and Pacific Strategic go up and down completely randomly.
Pair Corralation between Intermedia Capital and Pacific Strategic
Assuming the 90 days trading horizon Intermedia Capital Tbk is expected to under-perform the Pacific Strategic. In addition to that, Intermedia Capital is 2.15 times more volatile than Pacific Strategic Financial. It trades about -0.14 of its total potential returns per unit of risk. Pacific Strategic Financial is currently generating about -0.01 per unit of volatility. If you would invest 110,500 in Pacific Strategic Financial on August 31, 2024 and sell it today you would lose (9,000) from holding Pacific Strategic Financial or give up 8.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Intermedia Capital Tbk vs. Pacific Strategic Financial
Performance |
| Timeline |
| Intermedia Capital Tbk |
| Pacific Strategic |
Intermedia Capital and Pacific Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedia Capital and Pacific Strategic
The main advantage of trading using opposite Intermedia Capital and Pacific Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedia Capital position performs unexpectedly, Pacific Strategic 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 Pacific Strategic will offset losses from the drop in Pacific Strategic's long position.| Intermedia Capital vs. Indosat Tbk | Intermedia Capital vs. XL Axiata Tbk | Intermedia Capital vs. Energi Mega Persada | Intermedia Capital vs. Bakrie Brothers Tbk |
| Pacific Strategic vs. Bank BRISyariah Tbk | Pacific Strategic vs. Ace Hardware Indonesia | Pacific Strategic vs. Merdeka Copper Gold | Pacific Strategic vs. Mitra Pinasthika Mustika |
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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