Correlation Between Indosterling Technomedia and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Mega Manunggal 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 Mega Manunggal 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 Mega Manunggal Property, you can compare the effects of market volatilities on Indosterling Technomedia and Mega Manunggal 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 Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Mega Manunggal.
Diversification Opportunities for Indosterling Technomedia and Mega Manunggal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Mega is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property 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 Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Mega Manunggal go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Mega Manunggal
If you would invest 5,000 in Indosterling Technomedia Tbk on September 4, 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 | 95.24% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Mega Manunggal Property
Performance |
| Timeline |
| Indosterling Technomedia |
| Mega Manunggal Property |
Indosterling Technomedia and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Mega Manunggal
The main advantage of trading using opposite Indosterling Technomedia and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal's long position.| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Envy Technologies Indonesia |
| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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