Correlation Between Cipta Selera and Indointernet Tbk

Can any of the company-specific risk be diversified away by investing in both Cipta Selera and Indointernet Tbk 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 Cipta Selera and Indointernet Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cipta Selera Murni and Indointernet Tbk PT, you can compare the effects of market volatilities on Cipta Selera and Indointernet Tbk 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 Cipta Selera with a short position of Indointernet Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipta Selera and Indointernet Tbk.

Diversification Opportunities for Cipta Selera and Indointernet Tbk

-0.33

Correlation Coefficient

Cipta Selera  Indointernet Tbk

Very good diversification

The 3 months correlation between Cipta and Indointernet is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cipta Selera Murni and Indointernet Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indointernet Tbk and Cipta Selera 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 Cipta Selera Murni are associated (or correlated) with Indointernet Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indointernet Tbk has no effect on the direction of Cipta Selera i.e., Cipta Selera and Indointernet Tbk go up and down completely randomly.

Pair Corralation between Cipta Selera and Indointernet Tbk

If you would invest  0.00  in Cipta Selera Murni on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Cipta Selera Murni or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Cipta Selera Murni  vs.  Indointernet Tbk PT

Cipta Selera Murni

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Cipta Selera Murni has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak forward-looking signals, Cipta Selera disclosed solid returns over the last few months and may actually be approaching a breakup point.

Indointernet Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Indointernet Tbk PT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Cipta Selera and Indointernet Tbk

The main advantage of trading using opposite Cipta Selera and Indointernet Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipta Selera position performs unexpectedly, Indointernet Tbk 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 Indointernet Tbk will offset losses from the drop in Indointernet Tbk's long position.

The idea behind Cipta Selera Murni and Indointernet Tbk PT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.