Correlation Between Nusantara Almazia and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both Nusantara Almazia and Integra Indocabinet 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 Nusantara Almazia and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusantara Almazia and Integra Indocabinet Tbk, you can compare the effects of market volatilities on Nusantara Almazia and Integra Indocabinet 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 Nusantara Almazia with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusantara Almazia and Integra Indocabinet.
Diversification Opportunities for Nusantara Almazia and Integra Indocabinet
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nusantara and Integra is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nusantara Almazia and Integra Indocabinet Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Indocabinet Tbk and Nusantara Almazia 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 Nusantara Almazia are associated (or correlated) with Integra Indocabinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Indocabinet Tbk has no effect on the direction of Nusantara Almazia i.e., Nusantara Almazia and Integra Indocabinet go up and down completely randomly.
Pair Corralation between Nusantara Almazia and Integra Indocabinet
Assuming the 90 days trading horizon Nusantara Almazia is expected to under-perform the Integra Indocabinet. In addition to that, Nusantara Almazia is 1.71 times more volatile than Integra Indocabinet Tbk. It trades about -0.04 of its total potential returns per unit of risk. Integra Indocabinet Tbk is currently generating about -0.01 per unit of volatility. If you would invest 41,000 in Integra Indocabinet Tbk on August 31, 2024 and sell it today you would lose (7,800) from holding Integra Indocabinet Tbk or give up 19.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nusantara Almazia vs. Integra Indocabinet Tbk
Performance |
| Timeline |
| Nusantara Almazia |
| Integra Indocabinet Tbk |
Nusantara Almazia and Integra Indocabinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusantara Almazia and Integra Indocabinet
The main advantage of trading using opposite Nusantara Almazia and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusantara Almazia position performs unexpectedly, Integra Indocabinet 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 Integra Indocabinet will offset losses from the drop in Integra Indocabinet's long position.| Nusantara Almazia vs. Bima Sakti Pertiwi | Nusantara Almazia vs. DMS Propertindo Tbk | Nusantara Almazia vs. Repower Asia Indonesia | Nusantara Almazia vs. Pollux Properti Indonesia |
| Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |