Correlation Between Integra Indocabinet and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Mitra Keluarga 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 Mitra Keluarga 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 Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Integra Indocabinet and Mitra Keluarga 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 Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Mitra Keluarga.
Diversification Opportunities for Integra Indocabinet and Mitra Keluarga
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integra and Mitra is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat 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 Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Mitra Keluarga
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 2.64 times more return on investment than Mitra Keluarga. However, Integra Indocabinet is 2.64 times more volatile than Mitra Keluarga Karyasehat. It trades about 0.03 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.08 per unit of risk. If you would invest 31,400 in Integra Indocabinet Tbk on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Integra Indocabinet Tbk or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Mitra Keluarga Karyasehat |
Integra Indocabinet and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Mitra Keluarga
The main advantage of trading using opposite Integra Indocabinet and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga'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 |
| Mitra Keluarga vs. Merdeka Copper Gold | Mitra Keluarga vs. Tower Bersama Infrastructure | Mitra Keluarga vs. Erajaya Swasembada Tbk | Mitra Keluarga vs. Surya Citra Media |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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