Correlation Between Indosterling Technomedia and Pudjiadi Sons
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Pudjiadi Sons 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 Pudjiadi Sons 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 Pudjiadi Sons Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and Pudjiadi Sons 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 Pudjiadi Sons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Pudjiadi Sons.
Diversification Opportunities for Indosterling Technomedia and Pudjiadi Sons
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Pudjiadi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Pudjiadi Sons Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pudjiadi Sons 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 Pudjiadi Sons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pudjiadi Sons Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Pudjiadi Sons go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Pudjiadi Sons
If you would invest 70,500 in Pudjiadi Sons Tbk on September 13, 2024 and sell it today you would earn a total of 75,500 from holding Pudjiadi Sons Tbk or generate 107.09% 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. Pudjiadi Sons Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| Pudjiadi Sons Tbk |
Indosterling Technomedia and Pudjiadi Sons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Pudjiadi Sons
The main advantage of trading using opposite Indosterling Technomedia and Pudjiadi Sons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Pudjiadi Sons 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 Pudjiadi Sons will offset losses from the drop in Pudjiadi Sons' 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 |
| Pudjiadi Sons vs. Alumindo Light Metal | Pudjiadi Sons vs. Indosterling Technomedia Tbk | Pudjiadi Sons vs. Intermedia Capital Tbk | Pudjiadi Sons vs. Kedawung Setia Industrial |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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