Correlation Between Integra Indocabinet and Slj Global
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Slj Global 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 Slj Global 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 Slj Global Tbk, you can compare the effects of market volatilities on Integra Indocabinet and Slj Global 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 Slj Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Slj Global.
Diversification Opportunities for Integra Indocabinet and Slj Global
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integra and Slj is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Slj Global Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slj Global 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 Slj Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slj Global Tbk has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Slj Global go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Slj Global
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 2.32 times more return on investment than Slj Global. However, Integra Indocabinet is 2.32 times more volatile than Slj Global Tbk. It trades about 0.04 of its potential returns per unit of risk. Slj Global Tbk is currently generating about -0.32 per unit of risk. If you would invest 32,600 in Integra Indocabinet Tbk on August 31, 2024 and sell it today you would earn a total of 600.00 from holding Integra Indocabinet Tbk or generate 1.84% 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. Slj Global Tbk
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Slj Global Tbk |
Integra Indocabinet and Slj Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Slj Global
The main advantage of trading using opposite Integra Indocabinet and Slj Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Slj Global 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 Slj Global will offset losses from the drop in Slj Global'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 |
| Slj Global vs. Solusi Bangun Indonesia | Slj Global vs. Bakrie Sumatera Plantations | Slj Global vs. Total Bangun Persada | Slj Global vs. Berlian Laju Tanker |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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