Correlation Between Singaraja Putra and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both Singaraja Putra 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 Singaraja Putra and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singaraja Putra and Integra Indocabinet Tbk, you can compare the effects of market volatilities on Singaraja Putra 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 Singaraja Putra with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singaraja Putra and Integra Indocabinet.
Diversification Opportunities for Singaraja Putra and Integra Indocabinet
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Singaraja and Integra is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Singaraja Putra 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 Singaraja Putra 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 Singaraja Putra 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 Singaraja Putra i.e., Singaraja Putra and Integra Indocabinet go up and down completely randomly.
Pair Corralation between Singaraja Putra and Integra Indocabinet
Assuming the 90 days trading horizon Singaraja Putra is expected to under-perform the Integra Indocabinet. In addition to that, Singaraja Putra is 3.28 times more volatile than Integra Indocabinet Tbk. It trades about -0.13 of its total potential returns per unit of risk. Integra Indocabinet Tbk is currently generating about -0.1 per unit of volatility. If you would invest 30,800 in Integra Indocabinet Tbk on August 27, 2024 and sell it today you would lose (1,400) from holding Integra Indocabinet Tbk or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singaraja Putra vs. Integra Indocabinet Tbk
Performance |
| Timeline |
| Singaraja Putra |
| Integra Indocabinet Tbk |
Singaraja Putra and Integra Indocabinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singaraja Putra and Integra Indocabinet
The main advantage of trading using opposite Singaraja Putra and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singaraja Putra 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.| Singaraja Putra vs. Nusantara Almazia | Singaraja Putra vs. Gaya Abadi Sempurna | Singaraja Putra vs. Kencana Energi Lestari | Singaraja Putra vs. Cahayaputra Asa Keramik |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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