Correlation Between Integra Indocabinet and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Pt Pakuan 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 Pt Pakuan 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 Pt Pakuan Tbk, you can compare the effects of market volatilities on Integra Indocabinet and Pt Pakuan 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 Pt Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Pt Pakuan.
Diversification Opportunities for Integra Indocabinet and Pt Pakuan
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and UANG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan 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 Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and Pt Pakuan go up and down completely randomly.
Pair Corralation between Integra Indocabinet and Pt Pakuan
If you would invest 31,400 in Integra Indocabinet Tbk on September 1, 2024 and sell it today you would earn a total of 400.00 from holding Integra Indocabinet Tbk or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| Pt Pakuan Tbk |
Integra Indocabinet and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and Pt Pakuan
The main advantage of trading using opposite Integra Indocabinet and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, Pt Pakuan 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 Pt Pakuan will offset losses from the drop in Pt Pakuan'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 |
| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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