Correlation Between M Cash and Intanwijaya Internasional

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

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

Diversification Opportunities for M Cash and Intanwijaya Internasional

-0.47

Correlation Coefficient

M Cash  Intanwijaya Internasional

Very good diversification

The 3 months correlation between MCAS and Intanwijaya is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding M Cash Integrasi and Intanwijaya Internasional Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intanwijaya Internasional and M Cash 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 M Cash Integrasi are associated (or correlated) with Intanwijaya Internasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intanwijaya Internasional has no effect on the direction of M Cash i.e., M Cash and Intanwijaya Internasional go up and down completely randomly.

Pair Corralation between M Cash and Intanwijaya Internasional

Assuming the 90 days trading horizon M Cash Integrasi is expected to under-perform the Intanwijaya Internasional. In addition to that, M Cash is 2.57 times more volatile than Intanwijaya Internasional Tbk. It trades about -0.16 of its total potential returns per unit of risk. Intanwijaya Internasional Tbk is currently generating about 0.11 per unit of volatility. If you would invest  55,198  in Intanwijaya Internasional Tbk on April 24, 2025 and sell it today you would earn a total of  4,302  from holding Intanwijaya Internasional Tbk or generate 7.79% return on investment over 90 days.

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

M Cash Integrasi  vs.  Intanwijaya Internasional Tbk

M Cash Integrasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days M Cash Integrasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Intanwijaya Internasional

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intanwijaya Internasional Tbk are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Intanwijaya Internasional may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with M Cash and Intanwijaya Internasional

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

The idea behind M Cash Integrasi and Intanwijaya 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.