Correlation Between Integra Indocabinet and Tera Data
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Tera Data 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 Tera Data 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 Tera Data Indonusa, you can compare the effects of market volatilities on Integra Indocabinet and Tera Data 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 Tera Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Tera Data.
Diversification Opportunities for Integra Indocabinet and Tera Data
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and Tera is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Tera Data Indonusa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tera Data Indonusa 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 Tera Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tera Data Indonusa has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Tera Data go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Tera Data
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to under-perform the Tera Data. In addition to that, Integra Indocabinet is 1.16 times more volatile than Tera Data Indonusa. It trades about -0.1 of its total potential returns per unit of risk. Tera Data Indonusa is currently generating about 0.1 per unit of volatility. If you would invest 11,716 in Tera Data Indonusa on August 27, 2024 and sell it today you would earn a total of 384.00 from holding Tera Data Indonusa or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Tera Data Indonusa
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Tera Data Indonusa |
Integra Indocabinet and Tera Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Tera Data
The main advantage of trading using opposite Integra Indocabinet and Tera Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Tera Data 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 Tera Data will offset losses from the drop in Tera Data'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 |
| Tera Data vs. PT Dewi Shri | Tera Data vs. PT Arkora Hydro | Tera Data vs. Habco Trans Maritima | Tera Data vs. PT Jhonlin Agro |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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