Correlation Between Indosterling Technomedia and Perusahaan Gas
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Perusahaan Gas 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 Perusahaan Gas 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 Perusahaan Gas Negara, you can compare the effects of market volatilities on Indosterling Technomedia and Perusahaan Gas 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 Perusahaan Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Perusahaan Gas.
Diversification Opportunities for Indosterling Technomedia and Perusahaan Gas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Perusahaan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Perusahaan Gas Negara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Gas Negara 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 Perusahaan Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Gas Negara has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Perusahaan Gas go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Perusahaan Gas
If you would invest 153,000 in Perusahaan Gas Negara on September 2, 2024 and sell it today you would lose (500.00) from holding Perusahaan Gas Negara or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Perusahaan Gas Negara
Performance |
| Timeline |
| Indosterling Technomedia |
| Perusahaan Gas Negara |
Indosterling Technomedia and Perusahaan Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Perusahaan Gas
The main advantage of trading using opposite Indosterling Technomedia and Perusahaan Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Perusahaan Gas 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 Perusahaan Gas will offset losses from the drop in Perusahaan Gas' 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 |
| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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