Correlation Between Integra Indocabinet and Pioneerindo Gourmet
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Pioneerindo Gourmet 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 Pioneerindo Gourmet 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 Pioneerindo Gourmet International, you can compare the effects of market volatilities on Integra Indocabinet and Pioneerindo Gourmet 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 Pioneerindo Gourmet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Pioneerindo Gourmet.
Diversification Opportunities for Integra Indocabinet and Pioneerindo Gourmet
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integra and Pioneerindo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Pioneerindo Gourmet Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneerindo Gourmet 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 Pioneerindo Gourmet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneerindo Gourmet has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Pioneerindo Gourmet go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Pioneerindo Gourmet
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 0.57 times more return on investment than Pioneerindo Gourmet. However, Integra Indocabinet Tbk is 1.74 times less risky than Pioneerindo Gourmet. It trades about 0.03 of its potential returns per unit of risk. Pioneerindo Gourmet International is currently generating about -0.04 per unit of risk. If you would invest 30,200 in Integra Indocabinet Tbk on August 29, 2024 and sell it today you would earn a total of 3,600 from holding Integra Indocabinet Tbk or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Pioneerindo Gourmet Internatio
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Pioneerindo Gourmet |
Integra Indocabinet and Pioneerindo Gourmet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Pioneerindo Gourmet
The main advantage of trading using opposite Integra Indocabinet and Pioneerindo Gourmet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Pioneerindo Gourmet 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 Pioneerindo Gourmet will offset losses from the drop in Pioneerindo Gourmet's long position.| Integra Indocabinet vs. Pembangunan Jaya Ancol | Integra Indocabinet vs. Panorama Sentrawisata Tbk | Integra Indocabinet vs. Millennium Pharmacon International | Integra Indocabinet vs. Tempo Inti Media |
| Pioneerindo Gourmet vs. Pudjiadi Sons Tbk | Pioneerindo Gourmet vs. Hotel Sahid Jaya | Pioneerindo Gourmet vs. Sona Topas Tourism | Pioneerindo Gourmet vs. Panorama Sentrawisata 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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