Correlation Between Integra Indocabinet and Indo Straits
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Indo Straits 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 Indo Straits 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 Indo Straits Tbk, you can compare the effects of market volatilities on Integra Indocabinet and Indo Straits 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 Indo Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Indo Straits.
Diversification Opportunities for Integra Indocabinet and Indo Straits
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integra and Indo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Indo Straits Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Straits Tbk 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 Indo Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Straits Tbk has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Indo Straits go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Indo Straits
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 0.55 times more return on investment than Indo Straits. However, Integra Indocabinet Tbk is 1.81 times less risky than Indo Straits. It trades about -0.01 of its potential returns per unit of risk. Indo Straits Tbk is currently generating about 0.0 per unit of risk. If you would invest 44,200 in Integra Indocabinet Tbk on September 12, 2024 and sell it today you would lose (8,400) from holding Integra Indocabinet Tbk or give up 19.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.69% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Indo Straits Tbk
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Indo Straits Tbk |
Integra Indocabinet and Indo Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Indo Straits
The main advantage of trading using opposite Integra Indocabinet and Indo Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Indo Straits 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 Indo Straits will offset losses from the drop in Indo Straits' 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 |
| Indo Straits vs. PT Indonesia Kendaraan | Indo Straits vs. Surya Toto Indonesia | Indo Straits vs. Mitra Pinasthika Mustika | Indo Straits 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 CEOs Directory module to screen CEOs from public companies around the world.
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