Correlation Between Integra Indocabinet and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Akr Corporindo 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 Integra Indocabinet and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra Indocabinet Tbk and Akr Corporindo Tbk, you can compare the effects of market volatilities on Integra Indocabinet and Akr Corporindo 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 Integra Indocabinet with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Akr Corporindo.
Diversification Opportunities for Integra Indocabinet and Akr Corporindo
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integra and Akr is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and Integra Indocabinet 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 Integra Indocabinet Tbk are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Akr Corporindo go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Akr Corporindo
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 1.6 times more return on investment than Akr Corporindo. However, Integra Indocabinet is 1.6 times more volatile than Akr Corporindo Tbk. It trades about 0.02 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about -0.04 per unit of risk. If you would invest 35,000 in Integra Indocabinet Tbk on December 2, 2024 and sell it today you would earn a total of 0.00 from holding Integra Indocabinet Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Akr Corporindo Tbk |
Integra Indocabinet and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Akr Corporindo
The main advantage of trading using opposite Integra Indocabinet and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari PT |
| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga 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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |