Correlation Between Indosterling Technomedia and Sumber Alfaria
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Sumber Alfaria 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 Indosterling Technomedia and Sumber Alfaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosterling Technomedia Tbk and Sumber Alfaria Trijaya, you can compare the effects of market volatilities on Indosterling Technomedia and Sumber Alfaria 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 Indosterling Technomedia with a short position of Sumber Alfaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Sumber Alfaria.
Diversification Opportunities for Indosterling Technomedia and Sumber Alfaria
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Sumber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Sumber Alfaria Trijaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Alfaria Trijaya and Indosterling Technomedia 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 Indosterling Technomedia Tbk are associated (or correlated) with Sumber Alfaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Alfaria Trijaya has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Sumber Alfaria go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Sumber Alfaria
If you would invest 5,000 in Indosterling Technomedia Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Indosterling Technomedia Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Sumber Alfaria Trijaya
Performance |
| Timeline |
| Indosterling Technomedia |
| Sumber Alfaria Trijaya |
Indosterling Technomedia and Sumber Alfaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Sumber Alfaria
The main advantage of trading using opposite Indosterling Technomedia and Sumber Alfaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Sumber Alfaria 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 Sumber Alfaria will offset losses from the drop in Sumber Alfaria's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
| Sumber Alfaria vs. Elang Mahkota Teknologi | Sumber Alfaria vs. Ace Hardware Indonesia | Sumber Alfaria vs. BFI Finance Indonesia | Sumber Alfaria vs. Tower Bersama Infrastructure |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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