Correlation Between Integra Indocabinet and Jembo Cable
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Jembo Cable 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 Jembo Cable 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 Jembo Cable, you can compare the effects of market volatilities on Integra Indocabinet and Jembo Cable 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 Jembo Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Jembo Cable.
Diversification Opportunities for Integra Indocabinet and Jembo Cable
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Integra and Jembo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Jembo Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jembo Cable 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 Jembo Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jembo Cable has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Jembo Cable go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Jembo Cable
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to under-perform the Jembo Cable. But the stock apears to be less risky and, when comparing its historical volatility, Integra Indocabinet Tbk is 1.07 times less risky than Jembo Cable. The stock trades about 0.0 of its potential returns per unit of risk. The Jembo Cable is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 72,568 in Jembo Cable on September 12, 2024 and sell it today you would lose (10,568) from holding Jembo Cable or give up 14.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Jembo Cable
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Jembo Cable |
Integra Indocabinet and Jembo Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Jembo Cable
The main advantage of trading using opposite Integra Indocabinet and Jembo Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Jembo Cable 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 Jembo Cable will offset losses from the drop in Jembo Cable'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 |
| Jembo Cable vs. PT Indonesia Kendaraan | Jembo Cable vs. Surya Toto Indonesia | Jembo Cable vs. Mitra Pinasthika Mustika | Jembo Cable 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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