Correlation Between Integra Indocabinet and Tourindo Guide
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Tourindo Guide 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 Tourindo Guide 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 Tourindo Guide Indonesia, you can compare the effects of market volatilities on Integra Indocabinet and Tourindo Guide 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 Tourindo Guide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Tourindo Guide.
Diversification Opportunities for Integra Indocabinet and Tourindo Guide
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integra and Tourindo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Tourindo Guide Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tourindo Guide Indonesia 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 Tourindo Guide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tourindo Guide Indonesia has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Tourindo Guide go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Tourindo Guide
Assuming the 90 days trading horizon Integra Indocabinet is expected to generate 1.97 times less return on investment than Tourindo Guide. In addition to that, Integra Indocabinet is 4.45 times more volatile than Tourindo Guide Indonesia. It trades about 0.04 of its total potential returns per unit of risk. Tourindo Guide Indonesia is currently generating about 0.34 per unit of volatility. If you would invest 9,000 in Tourindo Guide Indonesia on August 31, 2024 and sell it today you would earn a total of 700.00 from holding Tourindo Guide Indonesia or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Tourindo Guide Indonesia
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Tourindo Guide Indonesia |
Integra Indocabinet and Tourindo Guide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Tourindo Guide
The main advantage of trading using opposite Integra Indocabinet and Tourindo Guide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Tourindo Guide 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 Tourindo Guide will offset losses from the drop in Tourindo Guide'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 |
| Tourindo Guide vs. Cashlez Worldwide Indonesia | Tourindo Guide vs. Sentral Mitra Informatika | Tourindo Guide vs. NFC Indonesia PT | Tourindo Guide vs. Hensel Davest Indonesia |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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