Correlation Between Indosterling Technomedia and Intermedia Capital
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Intermedia Capital 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 Intermedia Capital 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 Intermedia Capital Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and Intermedia Capital 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 Intermedia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Intermedia Capital.
Diversification Opportunities for Indosterling Technomedia and Intermedia Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Intermedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Intermedia Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedia Capital 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 Intermedia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedia Capital Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Intermedia Capital go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Intermedia Capital
If you would invest 1,800 in Intermedia Capital Tbk on November 27, 2024 and sell it today you would earn a total of 2,600 from holding Intermedia Capital Tbk or generate 144.44% 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. Intermedia Capital Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| Intermedia Capital Tbk |
Indosterling Technomedia and Intermedia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Intermedia Capital
The main advantage of trading using opposite Indosterling Technomedia and Intermedia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Intermedia Capital 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 Intermedia Capital will offset losses from the drop in Intermedia Capital'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 |
| Intermedia Capital vs. Visi Media Asia | Intermedia Capital vs. Mnc Sky Vision | Intermedia Capital vs. Mahaka Radio Integra | Intermedia Capital vs. Mnc Land 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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