Correlation Between Integra Indocabinet and Sri Rejeki

Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and Sri Rejeki 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 Sri Rejeki 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 Sri Rejeki IsmanPT, you can compare the effects of market volatilities on Integra Indocabinet and Sri Rejeki 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 Sri Rejeki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and Sri Rejeki.

Diversification Opportunities for Integra Indocabinet and Sri Rejeki

0.0

Correlation Coefficient

Integra Indocabinet  Sri Rejeki

Pay attention - limited upside

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

Pair Corralation between Integra Indocabinet and Sri Rejeki

If you would invest  14,600  in Sri Rejeki IsmanPT on March 17, 2024 and sell it today you would earn a total of  0.00  from holding Sri Rejeki IsmanPT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Integra Indocabinet Tbk  vs.  Sri Rejeki IsmanPT

Integra Indocabinet Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sri Rejeki IsmanPT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sri Rejeki IsmanPT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Sri Rejeki 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 Integra Indocabinet and Sri Rejeki

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

The idea behind Integra Indocabinet Tbk and Sri Rejeki IsmanPT 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.