Correlation Between Integra Indocabinet and Total Bangun
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Total Bangun 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 Total Bangun 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 Total Bangun Persada, you can compare the effects of market volatilities on Integra Indocabinet and Total Bangun 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 Total Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Total Bangun.
Diversification Opportunities for Integra Indocabinet and Total Bangun
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integra and Total is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Total Bangun Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Bangun Persada 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 Total Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Bangun Persada has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Total Bangun go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Total Bangun
Assuming the 90 days trading horizon Integra Indocabinet is expected to generate 10.58 times less return on investment than Total Bangun. In addition to that, Integra Indocabinet is 1.01 times more volatile than Total Bangun Persada. It trades about 0.01 of its total potential returns per unit of risk. Total Bangun Persada is currently generating about 0.1 per unit of volatility. If you would invest 21,406 in Total Bangun Persada on September 14, 2024 and sell it today you would earn a total of 50,094 from holding Total Bangun Persada or generate 234.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Total Bangun Persada
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Total Bangun Persada |
Integra Indocabinet and Total Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Total Bangun
The main advantage of trading using opposite Integra Indocabinet and Total Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Total Bangun 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 Total Bangun will offset losses from the drop in Total Bangun'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 |
| Total Bangun vs. Kawasan Industri Jababeka | Total Bangun vs. Adhi Karya Persero | Total Bangun vs. Ciputra Development Tbk | Total Bangun vs. Solusi Bangun 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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