Correlation Between Yelooo Integra and Modern Internasional

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

By analyzing existing cross correlation between Yelooo Integra Datanet and Modern Internasional Tbk, you can compare the effects of market volatilities on Yelooo Integra and Modern Internasional 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 Yelooo Integra with a short position of Modern Internasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yelooo Integra and Modern Internasional.

Diversification Opportunities for Yelooo Integra and Modern Internasional

0.59

Correlation Coefficient

Yelooo Integra  Modern Internasional

Very weak diversification

The 3 months correlation between Yelooo and Modern is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Yelooo Integra Datanet and Modern Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modern Internasional Tbk and Yelooo Integra 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 Yelooo Integra Datanet are associated (or correlated) with Modern Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modern Internasional Tbk has no effect on the direction of Yelooo Integra i.e., Yelooo Integra and Modern Internasional go up and down completely randomly.

Pair Corralation between Yelooo Integra and Modern Internasional

Assuming the 90 days trading horizon Yelooo Integra Datanet is expected to under-perform the Modern Internasional. But the stock apears to be less risky and, when comparing its historical volatility, Yelooo Integra Datanet is 2.01 times less risky than Modern Internasional. The stock trades about -0.06 of its potential returns per unit of risk. The Modern Internasional Tbk is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  5,000  in Modern Internasional Tbk on September 13, 2024 and sell it today you would lose (4,400) from holding Modern Internasional Tbk or give up 88.0% of portfolio value over 90 days.

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

Yelooo Integra Datanet  vs.  Modern Internasional Tbk

Yelooo Integra Datanet

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yelooo Integra Datanet are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Yelooo Integra is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Modern Internasional Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Modern Internasional Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Yelooo Integra and Modern Internasional

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

The idea behind Yelooo Integra Datanet and Modern Internasional 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..