Correlation Between PT Indosat and COMSovereign Holding
Can any of the company-specific risk be diversified away by investing in both PT Indosat and COMSovereign Holding 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 COMSovereign Holding 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 COMSovereign Holding Corp, you can compare the effects of market volatilities on PT Indosat and COMSovereign Holding 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 COMSovereign Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indosat and COMSovereign Holding.
Diversification Opportunities for PT Indosat and COMSovereign Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTITF and COMSovereign is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Indosat Tbk and COMSovereign Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMSovereign Holding Corp 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 COMSovereign Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMSovereign Holding Corp has no effect on the direction of PT Indosat i.e., PT Indosat and COMSovereign Holding go up and down completely randomly.
Pair Corralation between PT Indosat and COMSovereign Holding
Assuming the 90 days horizon PT Indosat Tbk is expected to generate 10.28 times more return on investment than COMSovereign Holding. However, PT Indosat is 10.28 times more volatile than COMSovereign Holding Corp. It trades about 0.19 of its potential returns per unit of risk. COMSovereign Holding Corp is currently generating about -0.11 per unit of risk. If you would invest 40.00 in PT Indosat Tbk on August 26, 2024 and sell it today you would earn a total of 23.00 from holding PT Indosat Tbk or generate 57.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.83% |
| Values | Daily Returns |
PT Indosat Tbk vs. COMSovereign Holding Corp
Performance |
| Timeline |
| PT Indosat Tbk |
| COMSovereign Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Indosat and COMSovereign Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indosat and COMSovereign Holding
The main advantage of trading using opposite PT Indosat and COMSovereign Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indosat position performs unexpectedly, COMSovereign Holding 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 COMSovereign Holding will offset losses from the drop in COMSovereign Holding's long position.| PT Indosat vs. Singapore Telecommunications Limited | PT Indosat vs. China Tower | PT Indosat vs. Vodafone Group PLC | PT Indosat vs. MTN Group Ltd |
| COMSovereign Holding vs. KORE Group Holdings | COMSovereign Holding vs. Liberty Broadband Srs | COMSovereign Holding vs. Liberty Broadband Srs | COMSovereign Holding vs. Consolidated Communications |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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