Correlation Between Inter Delta and Pan Brothers

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

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

Diversification Opportunities for Inter Delta and Pan Brothers

0.0

Correlation Coefficient

Inter Delta  Pan Brothers

Pay attention - limited upside

The 3 months correlation between Inter and Pan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Inter Delta Tbk and Pan Brothers Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Brothers Tbk and Inter Delta 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 Inter Delta Tbk are associated (or correlated) with Pan Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Brothers Tbk has no effect on the direction of Inter Delta i.e., Inter Delta and Pan Brothers go up and down completely randomly.

Pair Corralation between Inter Delta and Pan Brothers

If you would invest  19,200  in Inter Delta Tbk on December 20, 2024 and sell it today you would earn a total of  500.00  from holding Inter Delta Tbk or generate 2.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

Inter Delta Tbk  vs.  Pan Brothers Tbk

Inter Delta Tbk

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Inter Delta Tbk are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Inter Delta may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pan Brothers Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pan Brothers Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Pan Brothers is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Inter Delta and Pan Brothers

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

The idea behind Inter Delta Tbk and Pan Brothers Tbk 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.