Correlation Between PT Techno9 and Akbar Indomakmur
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Akbar Indomakmur 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 PT Techno9 and Akbar Indomakmur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and Akbar Indomakmur Stimec, you can compare the effects of market volatilities on PT Techno9 and Akbar Indomakmur 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 PT Techno9 with a short position of Akbar Indomakmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Akbar Indomakmur.
Diversification Opportunities for PT Techno9 and Akbar Indomakmur
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NINE and Akbar is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Akbar Indomakmur Stimec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbar Indomakmur Stimec and PT Techno9 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 PT Techno9 Indonesia are associated (or correlated) with Akbar Indomakmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbar Indomakmur Stimec has no effect on the direction of PT Techno9 i.e., PT Techno9 and Akbar Indomakmur go up and down completely randomly.
Pair Corralation between PT Techno9 and Akbar Indomakmur
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 1.65 times more return on investment than Akbar Indomakmur. However, PT Techno9 is 1.65 times more volatile than Akbar Indomakmur Stimec. It trades about 0.15 of its potential returns per unit of risk. Akbar Indomakmur Stimec is currently generating about -0.04 per unit of risk. If you would invest 800.00 in PT Techno9 Indonesia on September 1, 2024 and sell it today you would earn a total of 3,400 from holding PT Techno9 Indonesia or generate 425.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Akbar Indomakmur Stimec
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Akbar Indomakmur Stimec |
PT Techno9 and Akbar Indomakmur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Akbar Indomakmur
The main advantage of trading using opposite PT Techno9 and Akbar Indomakmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Akbar Indomakmur 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 Akbar Indomakmur will offset losses from the drop in Akbar Indomakmur's long position.| PT Techno9 vs. Multipolar Technology Tbk | PT Techno9 vs. Digital Mediatama Maxima | PT Techno9 vs. NFC Indonesia PT | PT Techno9 vs. Kioson Komersial Indonesia |
| Akbar Indomakmur vs. Matahari Department Store | Akbar Indomakmur vs. Multi Medika Internasional | Akbar Indomakmur vs. Visi Media Asia | Akbar Indomakmur vs. Bayan Resources 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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