Correlation Between Integra Indocabinet and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Humpuss Intermoda 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 Humpuss Intermoda 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 Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Integra Indocabinet and Humpuss Intermoda 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 Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Humpuss Intermoda.
Diversification Opportunities for Integra Indocabinet and Humpuss Intermoda
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integra and Humpuss is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda 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 Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Humpuss Intermoda
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 1.06 times more return on investment than Humpuss Intermoda. However, Integra Indocabinet is 1.06 times more volatile than Humpuss Intermoda Transportasi. It trades about 0.4 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about -0.25 per unit of risk. If you would invest 32,000 in Integra Indocabinet Tbk on November 5, 2024 and sell it today you would earn a total of 8,200 from holding Integra Indocabinet Tbk or generate 25.62% 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. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Humpuss Intermoda |
Integra Indocabinet and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Humpuss Intermoda
The main advantage of trading using opposite Integra Indocabinet and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda'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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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