Correlation Between PT Indosat and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both PT Indosat and Geely Automobile 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 Geely Automobile 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 Geely Automobile Holdings, you can compare the effects of market volatilities on PT Indosat and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indosat and Geely Automobile.
Diversification Opportunities for PT Indosat and Geely Automobile
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTITF and Geely is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Indosat Tbk and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of PT Indosat i.e., PT Indosat and Geely Automobile go up and down completely randomly.
Pair Corralation between PT Indosat and Geely Automobile
Assuming the 90 days horizon PT Indosat Tbk is expected to under-perform the Geely Automobile. In addition to that, PT Indosat is 1.88 times more volatile than Geely Automobile Holdings. It trades about -0.23 of its total potential returns per unit of risk. Geely Automobile Holdings is currently generating about 0.02 per unit of volatility. If you would invest 189.00 in Geely Automobile Holdings on November 1, 2024 and sell it today you would earn a total of 1.00 from holding Geely Automobile Holdings or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
PT Indosat Tbk vs. Geely Automobile Holdings
Performance |
| Timeline |
| PT Indosat Tbk |
| Geely Automobile Holdings |
PT Indosat and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indosat and Geely Automobile
The main advantage of trading using opposite PT Indosat and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indosat position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile'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 |
| Geely Automobile vs. Aston Martin Lagonda | Geely Automobile vs. Aston Martin Lagonda | Geely Automobile vs. Great Wall Motor | Geely Automobile vs. Polestar Automotive Holding |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |