Correlation Between Integra Indocabinet and Sido Muncul
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Sido Muncul 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 Sido Muncul 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 Sido Muncul PT, you can compare the effects of market volatilities on Integra Indocabinet and Sido Muncul 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 Sido Muncul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Sido Muncul.
Diversification Opportunities for Integra Indocabinet and Sido Muncul
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integra and Sido is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Sido Muncul PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sido Muncul PT 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 Sido Muncul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sido Muncul PT has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Sido Muncul go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Sido Muncul
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 1.52 times more return on investment than Sido Muncul. However, Integra Indocabinet is 1.52 times more volatile than Sido Muncul PT. It trades about -0.01 of its potential returns per unit of risk. Sido Muncul PT is currently generating about -0.02 per unit of risk. If you would invest 41,000 in Integra Indocabinet Tbk on August 31, 2024 and sell it today you would lose (7,800) from holding Integra Indocabinet Tbk or give up 19.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Sido Muncul PT
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Sido Muncul PT |
Integra Indocabinet and Sido Muncul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Sido Muncul
The main advantage of trading using opposite Integra Indocabinet and Sido Muncul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Sido Muncul 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 Sido Muncul will offset losses from the drop in Sido Muncul'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 |
| Sido Muncul vs. Bank BRISyariah Tbk | Sido Muncul vs. Mitra Pinasthika Mustika | Sido Muncul vs. Jakarta Int Hotels | Sido Muncul vs. Indosterling Technomedia 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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