Correlation Between PT Pelayaran and Inter Delta
Can any of the company-specific risk be diversified away by investing in both PT Pelayaran and Inter Delta 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 Pelayaran and Inter Delta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Pelayaran Tamarin and Inter Delta Tbk, you can compare the effects of market volatilities on PT Pelayaran and Inter Delta 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 Pelayaran with a short position of Inter Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Pelayaran and Inter Delta.
Diversification Opportunities for PT Pelayaran and Inter Delta
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TAMU and Inter is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding PT Pelayaran Tamarin and Inter Delta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Delta Tbk and PT Pelayaran 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 Pelayaran Tamarin are associated (or correlated) with Inter Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Delta Tbk has no effect on the direction of PT Pelayaran i.e., PT Pelayaran and Inter Delta go up and down completely randomly.
Pair Corralation between PT Pelayaran and Inter Delta
Assuming the 90 days trading horizon PT Pelayaran Tamarin is expected to under-perform the Inter Delta. But the stock apears to be less risky and, when comparing its historical volatility, PT Pelayaran Tamarin is 1.91 times less risky than Inter Delta. The stock trades about -0.18 of its potential returns per unit of risk. The Inter Delta Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 19,700 in Inter Delta Tbk on August 30, 2024 and sell it today you would lose (1,100) from holding Inter Delta Tbk or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Pelayaran Tamarin vs. Inter Delta Tbk
Performance |
| Timeline |
| PT Pelayaran Tamarin |
| Inter Delta Tbk |
PT Pelayaran and Inter Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Pelayaran and Inter Delta
The main advantage of trading using opposite PT Pelayaran and Inter Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Pelayaran position performs unexpectedly, Inter Delta 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 Inter Delta will offset losses from the drop in Inter Delta's long position.| PT Pelayaran vs. Dyandra Media International | PT Pelayaran vs. Global Mediacom Tbk | PT Pelayaran vs. Dharma Polimetal Tbk | PT Pelayaran vs. Trinitan Metals and |
| Inter Delta vs. Intraco Penta Tbk | Inter Delta vs. Jakarta Setiabudi Internasional | Inter Delta vs. Perdana Bangun Pusaka | Inter Delta vs. Gema Grahasarana Tbk |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |