Correlation Between Indosterling Technomedia and Supra Boga
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Supra Boga 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 Supra Boga 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 Supra Boga Lestari, you can compare the effects of market volatilities on Indosterling Technomedia and Supra Boga 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 Supra Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Supra Boga.
Diversification Opportunities for Indosterling Technomedia and Supra Boga
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Supra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Supra Boga Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supra Boga Lestari 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 Supra Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supra Boga Lestari has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Supra Boga go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Supra Boga
If you would invest 5,000 in Indosterling Technomedia Tbk on September 1, 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 | 95.45% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Supra Boga Lestari
Performance |
| Timeline |
| Indosterling Technomedia |
| Supra Boga Lestari |
Indosterling Technomedia and Supra Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Supra Boga
The main advantage of trading using opposite Indosterling Technomedia and Supra Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Supra Boga 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 Supra Boga will offset losses from the drop in Supra Boga's 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 |
| Supra Boga vs. Bank BRISyariah Tbk | Supra Boga vs. Mitra Pinasthika Mustika | Supra Boga vs. Jakarta Int Hotels | Supra Boga 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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