Correlation Between Solusi Tunas and Inti Bangun

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

By analyzing existing cross correlation between Solusi Tunas Pratama and Inti Bangun Sejahtera, you can compare the effects of market volatilities on Solusi Tunas and Inti Bangun 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 Solusi Tunas with a short position of Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solusi Tunas and Inti Bangun.

Diversification Opportunities for Solusi Tunas and Inti Bangun

0.0

Correlation Coefficient

Solusi Tunas  Inti Bangun

Pay attention - limited upside

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

Pair Corralation between Solusi Tunas and Inti Bangun

If you would invest  4,387,500  in Solusi Tunas Pratama on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Solusi Tunas Pratama or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Solusi Tunas Pratama  vs.  Inti Bangun Sejahtera

Solusi Tunas Pratama

Risk-Adjusted Performance

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Very Weak

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

Inti Bangun Sejahtera

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inti Bangun Sejahtera 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 Solusi Tunas and Inti Bangun

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

The idea behind Solusi Tunas Pratama and Inti Bangun Sejahtera 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.