Correlation Between Indo Acidatama and PT UBC
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and PT UBC 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 Indo Acidatama and PT UBC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Acidatama Tbk and PT UBC Medical, you can compare the effects of market volatilities on Indo Acidatama and PT UBC 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 Indo Acidatama with a short position of PT UBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and PT UBC.
Diversification Opportunities for Indo Acidatama and PT UBC
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indo and LABS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and PT UBC Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT UBC Medical and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with PT UBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT UBC Medical has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and PT UBC go up and down completely randomly.
Pair Corralation between Indo Acidatama and PT UBC
Assuming the 90 days trading horizon Indo Acidatama Tbk is expected to generate 0.75 times more return on investment than PT UBC. However, Indo Acidatama Tbk is 1.33 times less risky than PT UBC. It trades about -0.03 of its potential returns per unit of risk. PT UBC Medical is currently generating about -0.16 per unit of risk. If you would invest 5,100 in Indo Acidatama Tbk on August 30, 2024 and sell it today you would lose (100.00) from holding Indo Acidatama Tbk or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Acidatama Tbk vs. PT UBC Medical
Performance |
| Timeline |
| Indo Acidatama Tbk |
| PT UBC Medical |
Indo Acidatama and PT UBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Acidatama and PT UBC
The main advantage of trading using opposite Indo Acidatama and PT UBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, PT UBC 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 PT UBC will offset losses from the drop in PT UBC's long position.| Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma Tbk |
| PT UBC vs. Bank Central Asia | PT UBC vs. Bank Rakyat Indonesia | PT UBC vs. Bayan Resources Tbk | PT UBC vs. Bank Mandiri Persero |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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