Correlation Between PT Indosat and Meganet Corp

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

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

Diversification Opportunities for PT Indosat and Meganet Corp

0.0

Correlation Coefficient

PT Indosat  Meganet Corp

Pay attention - limited upside

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

Pair Corralation between PT Indosat and Meganet Corp

If you would invest  0.02  in Meganet Corp on December 29, 2024 and sell it today you would earn a total of  0.00  from holding Meganet Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PT Indosat Tbk  vs.  Meganet Corp

PT Indosat Tbk

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Indosat Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Meganet Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meganet Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Meganet Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PT Indosat and Meganet Corp

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

The idea behind PT Indosat Tbk and Meganet Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.