Correlation Between PT Techno9 and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and Indosterling Technomedia 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 Indosterling Technomedia 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 Indosterling Technomedia Tbk, you can compare the effects of market volatilities on PT Techno9 and Indosterling Technomedia 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 Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and Indosterling Technomedia.
Diversification Opportunities for PT Techno9 and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NINE and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia 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 Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of PT Techno9 i.e., PT Techno9 and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between PT Techno9 and Indosterling Technomedia
If you would invest 600.00 in PT Techno9 Indonesia on September 3, 2024 and sell it today you would earn a total of 3,600 from holding PT Techno9 Indonesia or generate 600.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.3% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| PT Techno9 Indonesia |
| Indosterling Technomedia |
PT Techno9 and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and Indosterling Technomedia
The main advantage of trading using opposite PT Techno9 and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia's long position.| PT Techno9 vs. Indointernet Tbk PT | PT Techno9 vs. Multipolar Technology Tbk | PT Techno9 vs. Indosterling Technomedia Tbk | PT Techno9 vs. PT Data Sinergitama |
| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. PT Data Sinergitama | Indosterling Technomedia vs. PT Techno9 Indonesia |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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