Correlation Between Indosterling Technomedia and PT UBC
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and PT UBC 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 PT UBC 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 PT UBC Medical, you can compare the effects of market volatilities on Indosterling Technomedia and PT UBC 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 PT UBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and PT UBC.
Diversification Opportunities for Indosterling Technomedia and PT UBC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and LABS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and PT UBC Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT UBC Medical 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 PT UBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT UBC Medical has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and PT UBC go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and PT UBC
If you would invest 13,400 in PT UBC Medical on September 4, 2024 and sell it today you would earn a total of 0.00 from holding PT UBC Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.82% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. PT UBC Medical
Performance |
| Timeline |
| Indosterling Technomedia |
| PT UBC Medical |
Indosterling Technomedia and PT UBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and PT UBC
The main advantage of trading using opposite Indosterling Technomedia and PT UBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, PT UBC 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 PT UBC will offset losses from the drop in PT UBC's long position.| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Envy Technologies Indonesia |
| PT UBC vs. Chandra Asri Petrochemical | PT UBC vs. Bank Negara Indonesia | PT UBC vs. Sumber Alfaria Trijaya | PT UBC vs. Mitra Pinasthika Mustika |
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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