Correlation Between Integra Indocabinet and PT Mandiri
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and PT Mandiri 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 Integra Indocabinet and PT Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra Indocabinet Tbk and PT Mandiri Herindo, you can compare the effects of market volatilities on Integra Indocabinet and PT Mandiri 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 Integra Indocabinet with a short position of PT Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and PT Mandiri.
Diversification Opportunities for Integra Indocabinet and PT Mandiri
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and MAHA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and PT Mandiri Herindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mandiri Herindo and Integra Indocabinet 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 Integra Indocabinet Tbk are associated (or correlated) with PT Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mandiri Herindo has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and PT Mandiri go up and down completely randomly.
Pair Corralation between Integra Indocabinet and PT Mandiri
Assuming the 90 days trading horizon Integra Indocabinet Tbk is expected to generate 2.48 times more return on investment than PT Mandiri. However, Integra Indocabinet is 2.48 times more volatile than PT Mandiri Herindo. It trades about 0.07 of its potential returns per unit of risk. PT Mandiri Herindo is currently generating about -0.09 per unit of risk. If you would invest 31,200 in Integra Indocabinet Tbk on December 1, 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 | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
Integra Indocabinet Tbk vs. PT Mandiri Herindo
Performance |
Timeline |
Integra Indocabinet Tbk |
PT Mandiri Herindo |
Integra Indocabinet and PT Mandiri Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integra Indocabinet and PT Mandiri
The main advantage of trading using opposite Integra Indocabinet and PT Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, PT Mandiri 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 PT Mandiri will offset losses from the drop in PT Mandiri's long position.Integra Indocabinet vs. Buyung Poetra Sembada | Integra Indocabinet vs. Erajaya Swasembada Tbk | Integra Indocabinet vs. Sariguna Primatirta PT | Integra Indocabinet vs. Puradelta Lestari PT |
PT Mandiri vs. Diamond Food Indonesia | PT Mandiri vs. Galva Technologies Tbk | PT Mandiri vs. Protech Mitra Perkasa | PT Mandiri vs. Weha Transportasi Indonesia |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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