Correlation Between Indosterling Technomedia and Indorama Synthetics
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Indorama Synthetics 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 Indorama Synthetics 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 Indorama Synthetics Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and Indorama Synthetics 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 Indorama Synthetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Indorama Synthetics.
Diversification Opportunities for Indosterling Technomedia and Indorama Synthetics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Indorama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Indorama Synthetics Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indorama Synthetics Tbk 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 Indorama Synthetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indorama Synthetics Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Indorama Synthetics go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Indorama Synthetics
If you would invest 5,000 in Indosterling Technomedia Tbk on October 23, 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 | 94.44% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Indorama Synthetics Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| Indorama Synthetics Tbk |
Indosterling Technomedia and Indorama Synthetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Indorama Synthetics
The main advantage of trading using opposite Indosterling Technomedia and Indorama Synthetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Indorama Synthetics 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 Indorama Synthetics will offset losses from the drop in Indorama Synthetics' 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 |
| Indorama Synthetics vs. Indospring Tbk | Indorama Synthetics vs. Indomobil Sukses Internasional | Indorama Synthetics vs. Sumi Indo Kabel | Indorama Synthetics vs. Goodyear Indonesia 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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