Correlation Between Pt Pakuan and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both Pt Pakuan and Integra Indocabinet 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 Pt Pakuan and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pt Pakuan Tbk and Integra Indocabinet Tbk, you can compare the effects of market volatilities on Pt Pakuan and Integra Indocabinet 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 Pt Pakuan with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pt Pakuan and Integra Indocabinet.
Diversification Opportunities for Pt Pakuan and Integra Indocabinet
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UANG and Integra is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Pt Pakuan Tbk and Integra Indocabinet Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Indocabinet Tbk and Pt Pakuan 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 Pt Pakuan Tbk are associated (or correlated) with Integra Indocabinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Indocabinet Tbk has no effect on the direction of Pt Pakuan i.e., Pt Pakuan and Integra Indocabinet go up and down completely randomly.
Pair Corralation between Pt Pakuan and Integra Indocabinet
If you would invest 31,400 in Integra Indocabinet Tbk on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Integra Indocabinet Tbk or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pt Pakuan Tbk vs. Integra Indocabinet Tbk
Performance |
| Timeline |
| Pt Pakuan Tbk |
| Integra Indocabinet Tbk |
Pt Pakuan and Integra Indocabinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pt Pakuan and Integra Indocabinet
The main advantage of trading using opposite Pt Pakuan and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pt Pakuan position performs unexpectedly, Integra Indocabinet 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 Integra Indocabinet will offset losses from the drop in Integra Indocabinet's long position.| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
| Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari PT |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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