Correlation Between INDOSAT -B- and INDOSAT -B-

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

By analyzing existing cross correlation between INDOSAT B and INDOSAT B , you can compare the effects of market volatilities on INDOSAT -B- and INDOSAT -B- 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 INDOSAT -B- with a short position of INDOSAT -B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOSAT -B- and INDOSAT -B-.

Diversification Opportunities for INDOSAT -B- and INDOSAT -B-

0.38

Correlation Coefficient

INDOSAT -B-  INDOSAT -B-

Weak diversification

The 3 months correlation between INDOSAT and INDOSAT is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding INDOSAT B and INDOSAT B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOSAT -B- and INDOSAT -B- 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 INDOSAT B are associated (or correlated) with INDOSAT -B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDOSAT -B- has no effect on the direction of INDOSAT -B- i.e., INDOSAT -B- and INDOSAT -B- go up and down completely randomly.

Pair Corralation between INDOSAT -B- and INDOSAT -B-

Assuming the 90 days trading horizon INDOSAT B is expected to generate 3.62 times more return on investment than INDOSAT -B-. However, INDOSAT -B- is 3.62 times more volatile than INDOSAT B . It trades about 0.0 of its potential returns per unit of risk. INDOSAT B is currently generating about -0.23 per unit of risk. If you would invest  13.00  in INDOSAT B on October 22, 2024 and sell it today you would lose (1.00) from holding INDOSAT B or give up 7.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

INDOSAT B   vs.  INDOSAT B

INDOSAT -B-

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDOSAT B has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, INDOSAT -B- is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

INDOSAT -B-

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDOSAT B has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with INDOSAT -B- and INDOSAT -B-

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

The idea behind INDOSAT B and INDOSAT B 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 Stocks Directory module to find actively traded stocks across global markets.