Correlation Between PT Charlie and Indosterling Technomedia

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

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

Diversification Opportunities for PT Charlie and Indosterling Technomedia

0.0

Correlation Coefficient

PT Charlie  Indosterling Technomedia

Pay attention - limited upside

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

Pair Corralation between PT Charlie and Indosterling Technomedia

If you would invest  33,000  in PT Charlie Hospital on September 17, 2024 and sell it today you would lose (400.00) from holding PT Charlie Hospital or give up 1.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

PT Charlie Hospital  vs.  Indosterling Technomedia Tbk

PT Charlie Hospital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Charlie Hospital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT Charlie is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Indosterling Technomedia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Indosterling Technomedia Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Indosterling Technomedia 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 PT Charlie and Indosterling Technomedia

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

The idea behind PT Charlie Hospital and Indosterling Technomedia 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.