Correlation Between Indosterling Technomedia and Metropolitan Kentjana
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Metropolitan Kentjana 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 Metropolitan Kentjana 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 Metropolitan Kentjana Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and Metropolitan Kentjana 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 Metropolitan Kentjana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Metropolitan Kentjana.
Diversification Opportunities for Indosterling Technomedia and Metropolitan Kentjana
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Metropolitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Metropolitan Kentjana Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Kentjana 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 Metropolitan Kentjana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Kentjana Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Metropolitan Kentjana go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Metropolitan Kentjana
If you would invest 2,597,500 in Metropolitan Kentjana Tbk on September 3, 2024 and sell it today you would lose (2,500) from holding Metropolitan Kentjana Tbk or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Metropolitan Kentjana Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| Metropolitan Kentjana Tbk |
Indosterling Technomedia and Metropolitan Kentjana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Metropolitan Kentjana
The main advantage of trading using opposite Indosterling Technomedia and Metropolitan Kentjana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Metropolitan Kentjana 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 Metropolitan Kentjana will offset losses from the drop in Metropolitan Kentjana'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 |
| Metropolitan Kentjana vs. Mitra Pinasthika Mustika | Metropolitan Kentjana vs. Jakarta Int Hotels | Metropolitan Kentjana vs. Asuransi Harta Aman | Metropolitan Kentjana 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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