Correlation Between Integra Indocabinet and Bank Tabungan
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Bank Tabungan 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 Bank Tabungan 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 Bank Tabungan Pensiunan, you can compare the effects of market volatilities on Integra Indocabinet and Bank Tabungan 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 Bank Tabungan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Bank Tabungan.
Diversification Opportunities for Integra Indocabinet and Bank Tabungan
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integra and Bank is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Bank Tabungan Pensiunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Tabungan Pensiunan 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 Bank Tabungan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Tabungan Pensiunan has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Bank Tabungan go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Bank Tabungan
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 1.79 times more return on investment than Bank Tabungan. However, Integra Indocabinet is 1.79 times more volatile than Bank Tabungan Pensiunan. It trades about 0.29 of its potential returns per unit of risk. Bank Tabungan Pensiunan is currently generating about -0.04 per unit of risk. If you would invest 30,400 in Integra Indocabinet Tbk on October 24, 2024 and sell it today you would earn a total of 5,200 from holding Integra Indocabinet Tbk or generate 17.11% 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. Bank Tabungan Pensiunan
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Bank Tabungan Pensiunan |
Integra Indocabinet and Bank Tabungan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Bank Tabungan
The main advantage of trading using opposite Integra Indocabinet and Bank Tabungan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Bank Tabungan 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 Bank Tabungan will offset losses from the drop in Bank Tabungan'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 |
| Bank Tabungan vs. Bank BRISyariah Tbk | Bank Tabungan vs. Ace Hardware Indonesia | Bank Tabungan vs. Merdeka Copper Gold | Bank Tabungan vs. Erajaya Swasembada 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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