Correlation Between TRADEDOUBLER and INDOSAT B

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

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

Diversification Opportunities for TRADEDOUBLER and INDOSAT B

-0.92

Correlation Coefficient

TRADEDOUBLER  INDOSAT B

Pay attention - limited upside

The 3 months correlation between TRADEDOUBLER and INDOSAT is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and INDOSAT B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDOSAT B and TRADEDOUBLER 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 TRADEDOUBLER AB SK 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 TRADEDOUBLER i.e., TRADEDOUBLER and INDOSAT B go up and down completely randomly.

Pair Corralation between TRADEDOUBLER and INDOSAT B

Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 0.9 times more return on investment than INDOSAT B. However, TRADEDOUBLER AB SK is 1.11 times less risky than INDOSAT B. It trades about 0.19 of its potential returns per unit of risk. INDOSAT B is currently generating about -0.16 per unit of risk. If you would invest  28.00  in TRADEDOUBLER AB SK on December 25, 2024 and sell it today you would earn a total of  20.00  from holding TRADEDOUBLER AB SK or generate 71.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

TRADEDOUBLER AB SK  vs.  INDOSAT B

TRADEDOUBLER AB SK

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TRADEDOUBLER AB SK are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRADEDOUBLER reported solid returns over the last few months and may actually be approaching a breakup point.

INDOSAT B

Risk-Adjusted Performance

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 technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with TRADEDOUBLER and INDOSAT B

The main advantage of trading using opposite TRADEDOUBLER and INDOSAT B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER 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 TRADEDOUBLER AB SK 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.