Correlation Between PT Indosat and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both PT Indosat and AMMB Holdings 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 Indosat and AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indosat Tbk and AMMB Holdings Berhad, you can compare the effects of market volatilities on PT Indosat and AMMB Holdings 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 Indosat with a short position of AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indosat and AMMB Holdings.
Diversification Opportunities for PT Indosat and AMMB Holdings
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTITF and AMMB is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indosat Tbk and AMMB Holdings Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Berhad and PT Indosat 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 Indosat Tbk are associated (or correlated) with AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Berhad has no effect on the direction of PT Indosat i.e., PT Indosat and AMMB Holdings go up and down completely randomly.
Pair Corralation between PT Indosat and AMMB Holdings
If you would invest 90.00 in AMMB Holdings Berhad on August 26, 2024 and sell it today you would earn a total of 0.00 from holding AMMB Holdings Berhad or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Indosat Tbk vs. AMMB Holdings Berhad
Performance |
| Timeline |
| PT Indosat Tbk |
| AMMB Holdings Berhad |
PT Indosat and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indosat and AMMB Holdings
The main advantage of trading using opposite PT Indosat and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indosat position performs unexpectedly, AMMB Holdings 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' long position.| PT Indosat vs. Vodafone Group PLC | PT Indosat vs. KDDI Corp | PT Indosat vs. Amrica Mvil, SAB | PT Indosat vs. Singapore Telecommunications Limited |
| AMMB Holdings vs. Entravision Communications | AMMB Holdings vs. Dolphin Entertainment | AMMB Holdings vs. 51Talk Online Education | AMMB Holdings vs. Xunlei Ltd Adr |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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