Correlation Between Integra Indocabinet and Ifishdeco
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Ifishdeco 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 Ifishdeco 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 Ifishdeco PT, you can compare the effects of market volatilities on Integra Indocabinet and Ifishdeco 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 Ifishdeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Ifishdeco.
Diversification Opportunities for Integra Indocabinet and Ifishdeco
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and Ifishdeco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Ifishdeco PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ifishdeco PT 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 Ifishdeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ifishdeco PT has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Ifishdeco go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Ifishdeco
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to under-perform the Ifishdeco. But the stock apears to be less risky and, when comparing its historical volatility, Integra Indocabinet Tbk is 1.18 times less risky than Ifishdeco. The stock trades about -0.01 of its potential returns per unit of risk. The Ifishdeco PT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 105,303 in Ifishdeco PT on August 26, 2024 and sell it today you would lose (24,303) from holding Ifishdeco PT or give up 23.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Ifishdeco PT
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Ifishdeco PT |
Integra Indocabinet and Ifishdeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Ifishdeco
The main advantage of trading using opposite Integra Indocabinet and Ifishdeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Ifishdeco 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 Ifishdeco will offset losses from the drop in Ifishdeco'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 |
| Ifishdeco vs. Merdeka Copper Gold | Ifishdeco vs. Aneka Tambang Persero | Ifishdeco vs. Bumi Resources Minerals | Ifishdeco vs. Timah Persero 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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