Correlation Between Indosterling Technomedia and Island Concepts
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Island Concepts 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 Island Concepts 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 Island Concepts Indonesia, you can compare the effects of market volatilities on Indosterling Technomedia and Island Concepts 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 Island Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Island Concepts.
Diversification Opportunities for Indosterling Technomedia and Island Concepts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Island is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Island Concepts Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Island Concepts Indonesia 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 Island Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Island Concepts Indonesia has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Island Concepts go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Island Concepts
If you would invest 5,000 in Indosterling Technomedia Tbk on September 5, 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 | 100.0% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Island Concepts Indonesia
Performance |
| Timeline |
| Indosterling Technomedia |
| Island Concepts Indonesia |
Indosterling Technomedia and Island Concepts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Island Concepts
The main advantage of trading using opposite Indosterling Technomedia and Island Concepts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Island Concepts 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 Island Concepts will offset losses from the drop in Island Concepts' long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Envy Technologies Indonesia |
| Island Concepts vs. Indonesian Paradise Property | Island Concepts vs. Inter Delta Tbk | Island Concepts vs. Jakarta Setiabudi Internasional | Island Concepts vs. Fast Food Indonesia |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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