Correlation Between Indosterling Technomedia and Asia Pacific
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Asia Pacific 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 Asia Pacific 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 Asia Pacific Investama, you can compare the effects of market volatilities on Indosterling Technomedia and Asia Pacific 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 Asia Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Asia Pacific.
Diversification Opportunities for Indosterling Technomedia and Asia Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Asia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Asia Pacific Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Pacific Investama 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 Asia Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Pacific Investama has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Asia Pacific go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Asia Pacific
If you would invest 5,000 in Indosterling Technomedia Tbk on September 5, 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 | 100.0% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Asia Pacific Investama
Performance |
| Timeline |
| Indosterling Technomedia |
| Asia Pacific Investama |
Indosterling Technomedia and Asia Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Asia Pacific
The main advantage of trading using opposite Indosterling Technomedia and Asia Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Asia Pacific 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 Asia Pacific will offset losses from the drop in Asia Pacific's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Envy Technologies Indonesia |
| Asia Pacific vs. Pan Brothers Tbk | Asia Pacific vs. Asia Pacific Fibers | Asia Pacific vs. Ricky Putra Globalindo | Asia Pacific vs. Prima Alloy Steel |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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