Correlation Between Indosterling Technomedia and Capital Financial
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Capital Financial 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 Capital Financial 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 Capital Financial Indonesia, you can compare the effects of market volatilities on Indosterling Technomedia and Capital Financial 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 Capital Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Capital Financial.
Diversification Opportunities for Indosterling Technomedia and Capital Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Capital Financial Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Financial 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 Capital Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Financial has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Capital Financial go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Capital Financial
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. Capital Financial Indonesia
Performance |
| Timeline |
| Indosterling Technomedia |
| Capital Financial |
Indosterling Technomedia and Capital Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Capital Financial
The main advantage of trading using opposite Indosterling Technomedia and Capital Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Capital Financial 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 Capital Financial will offset losses from the drop in Capital Financial'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 |
| Capital Financial vs. Ace Hardware Indonesia | Capital Financial vs. Merdeka Copper Gold | Capital Financial vs. Mitra Pinasthika Mustika | Capital Financial vs. Jakarta Int Hotels |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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