Correlation Between Indosterling Technomedia and PT Hetzer
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and PT Hetzer 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 Hetzer 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 Hetzer Medical, you can compare the effects of market volatilities on Indosterling Technomedia and PT Hetzer 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 Hetzer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and PT Hetzer.
Diversification Opportunities for Indosterling Technomedia and PT Hetzer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and MEDS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and PT Hetzer Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hetzer 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 Hetzer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hetzer Medical has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and PT Hetzer go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and PT Hetzer
Assuming the 90 days trading horizon Indosterling Technomedia Tbk is expected to under-perform the PT Hetzer. But the stock apears to be less risky and, when comparing its historical volatility, Indosterling Technomedia Tbk is 1.59 times less risky than PT Hetzer. The stock trades about -0.34 of its potential returns per unit of risk. The PT Hetzer Medical is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 16,600 in PT Hetzer Medical on September 3, 2024 and sell it today you would lose (11,600) from holding PT Hetzer Medical or give up 69.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. PT Hetzer Medical
Performance |
| Timeline |
| Indosterling Technomedia |
| PT Hetzer Medical |
Indosterling Technomedia and PT Hetzer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and PT Hetzer
The main advantage of trading using opposite Indosterling Technomedia and PT Hetzer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, PT Hetzer 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 Hetzer will offset losses from the drop in PT Hetzer's long position.| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. PT Data Sinergitama | Indosterling Technomedia vs. PT Techno9 Indonesia |
| PT Hetzer vs. Mitra Pinasthika Mustika | PT Hetzer vs. Jakarta Int Hotels | PT Hetzer vs. Asuransi Harta Aman | PT Hetzer vs. Indosterling Technomedia 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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