Correlation Between Intermedia Capital and Indosat Tbk
Can any of the company-specific risk be diversified away by investing in both Intermedia Capital and Indosat Tbk 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 Indosat Tbk 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 Indosat Tbk, you can compare the effects of market volatilities on Intermedia Capital and Indosat Tbk 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 Indosat Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermedia Capital and Indosat Tbk.
Diversification Opportunities for Intermedia Capital and Indosat Tbk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermedia and Indosat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intermedia Capital Tbk and Indosat Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosat Tbk 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 Indosat Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosat Tbk has no effect on the direction of Intermedia Capital i.e., Intermedia Capital and Indosat Tbk go up and down completely randomly.
Pair Corralation between Intermedia Capital and Indosat Tbk
If you would invest 232,000 in Indosat Tbk on August 31, 2024 and sell it today you would earn a total of 5,000 from holding Indosat Tbk or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermedia Capital Tbk vs. Indosat Tbk
Performance |
| Timeline |
| Intermedia Capital Tbk |
| Indosat Tbk |
Intermedia Capital and Indosat Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermedia Capital and Indosat Tbk
The main advantage of trading using opposite Intermedia Capital and Indosat Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermedia Capital position performs unexpectedly, Indosat Tbk 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 Indosat Tbk will offset losses from the drop in Indosat Tbk'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 |
| Indosat Tbk vs. Astra Agro Lestari | Indosat Tbk vs. Vale Indonesia Tbk | Indosat Tbk vs. Timah Persero Tbk | Indosat Tbk vs. Medco Energi Internasional |
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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