Correlation Between Integra Indocabinet and Royalindo Investa
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Royalindo Investa 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 Royalindo Investa 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 Royalindo Investa Wijaya, you can compare the effects of market volatilities on Integra Indocabinet and Royalindo Investa 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 Royalindo Investa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Royalindo Investa.
Diversification Opportunities for Integra Indocabinet and Royalindo Investa
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and Royalindo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Royalindo Investa Wijaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royalindo Investa Wijaya 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 Royalindo Investa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royalindo Investa Wijaya has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Royalindo Investa go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Royalindo Investa
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 4.16 times more return on investment than Royalindo Investa. However, Integra Indocabinet is 4.16 times more volatile than Royalindo Investa Wijaya. It trades about 0.01 of its potential returns per unit of risk. Royalindo Investa Wijaya 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Royalindo Investa Wijaya
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Royalindo Investa Wijaya |
Integra Indocabinet and Royalindo Investa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Royalindo Investa
The main advantage of trading using opposite Integra Indocabinet and Royalindo Investa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Royalindo Investa 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 Royalindo Investa will offset losses from the drop in Royalindo Investa'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 |
| Royalindo Investa vs. Jasa Armada Indonesia | Royalindo Investa vs. Cahayaputra Asa Keramik | Royalindo Investa vs. Campina Ice Cream | Royalindo Investa vs. Integra Indocabinet 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |