Correlation Between PT Multi and Integra Indocabinet
Can any of the company-specific risk be diversified away by investing in both PT Multi and Integra Indocabinet 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 PT Multi and Integra Indocabinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Multi Garam and Integra Indocabinet Tbk, you can compare the effects of market volatilities on PT Multi and Integra Indocabinet 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 PT Multi with a short position of Integra Indocabinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Multi and Integra Indocabinet.
Diversification Opportunities for PT Multi and Integra Indocabinet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FOLK and Integra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Multi Garam and Integra Indocabinet Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra Indocabinet Tbk and PT Multi 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 PT Multi Garam are associated (or correlated) with Integra Indocabinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra Indocabinet Tbk has no effect on the direction of PT Multi i.e., PT Multi and Integra Indocabinet go up and down completely randomly.
Pair Corralation between PT Multi and Integra Indocabinet
If you would invest 31,200 in Integra Indocabinet Tbk on December 2, 2024 and sell it today you would earn a total of 3,800 from holding Integra Indocabinet Tbk or generate 12.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PT Multi Garam vs. Integra Indocabinet Tbk
Performance |
Timeline |
PT Multi Garam |
Integra Indocabinet Tbk |
PT Multi and Integra Indocabinet Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Multi and Integra Indocabinet
The main advantage of trading using opposite PT Multi and Integra Indocabinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Multi position performs unexpectedly, Integra Indocabinet 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 Integra Indocabinet will offset losses from the drop in Integra Indocabinet's long position.PT Multi vs. Bank Central Asia | PT Multi vs. Bank Rakyat Indonesia | PT Multi vs. Bayan Resources Tbk | PT Multi vs. Bank Mandiri Persero |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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