Correlation Between Integra Indocabinet and Cahayaputra Asa
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Cahayaputra Asa 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 Cahayaputra Asa 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 Cahayaputra Asa Keramik, you can compare the effects of market volatilities on Integra Indocabinet and Cahayaputra Asa 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 Cahayaputra Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Cahayaputra Asa.
Diversification Opportunities for Integra Indocabinet and Cahayaputra Asa
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integra and Cahayaputra is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Cahayaputra Asa Keramik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cahayaputra Asa Keramik 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 Cahayaputra Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cahayaputra Asa Keramik has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Cahayaputra Asa go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Cahayaputra Asa
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 1.61 times more return on investment than Cahayaputra Asa. However, Integra Indocabinet is 1.61 times more volatile than Cahayaputra Asa Keramik. It trades about 0.01 of its potential returns per unit of risk. Cahayaputra Asa Keramik is currently generating about -0.04 per unit of risk. If you would invest 32,000 in Integra Indocabinet Tbk on September 2, 2024 and sell it today you would lose (200.00) from holding Integra Indocabinet Tbk or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Cahayaputra Asa Keramik
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Cahayaputra Asa Keramik |
Integra Indocabinet and Cahayaputra Asa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Cahayaputra Asa
The main advantage of trading using opposite Integra Indocabinet and Cahayaputra Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Cahayaputra Asa 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 Cahayaputra Asa will offset losses from the drop in Cahayaputra Asa'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 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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