Correlation Between Protech Mitra and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Protech Mitra and Inocycle Technology 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 Protech Mitra and Inocycle Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protech Mitra Perkasa and Inocycle Technology Tbk, you can compare the effects of market volatilities on Protech Mitra and Inocycle Technology 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 Protech Mitra with a short position of Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protech Mitra and Inocycle Technology.
Diversification Opportunities for Protech Mitra and Inocycle Technology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Protech and Inocycle is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Protech Mitra Perkasa and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology Tbk and Protech Mitra 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 Protech Mitra Perkasa are associated (or correlated) with Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Protech Mitra i.e., Protech Mitra and Inocycle Technology go up and down completely randomly.
Pair Corralation between Protech Mitra and Inocycle Technology
Assuming the 90 days trading horizon Protech Mitra Perkasa is expected to generate 0.98 times more return on investment than Inocycle Technology. However, Protech Mitra Perkasa is 1.02 times less risky than Inocycle Technology. It trades about -0.02 of its potential returns per unit of risk. Inocycle Technology Tbk is currently generating about -0.22 per unit of risk. If you would invest 13,800 in Protech Mitra Perkasa on August 31, 2024 and sell it today you would lose (200.00) from holding Protech Mitra Perkasa or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protech Mitra Perkasa vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Protech Mitra Perkasa |
| Inocycle Technology Tbk |
Protech Mitra and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protech Mitra and Inocycle Technology
The main advantage of trading using opposite Protech Mitra and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protech Mitra position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology's long position.| Protech Mitra vs. Matahari Department Store | Protech Mitra vs. Multi Medika Internasional | Protech Mitra vs. Visi Media Asia | Protech Mitra vs. Bayan Resources Tbk |
| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |