Correlation Between Arwana Citramulia and Dana Brata
Can any of the company-specific risk be diversified away by investing in both Arwana Citramulia and Dana Brata 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 Arwana Citramulia and Dana Brata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arwana Citramulia Tbk and Dana Brata Luhur, you can compare the effects of market volatilities on Arwana Citramulia and Dana Brata 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 Arwana Citramulia with a short position of Dana Brata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arwana Citramulia and Dana Brata.
Diversification Opportunities for Arwana Citramulia and Dana Brata
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arwana and Dana is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Arwana Citramulia Tbk and Dana Brata Luhur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Brata Luhur and Arwana Citramulia 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 Arwana Citramulia Tbk are associated (or correlated) with Dana Brata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Brata Luhur has no effect on the direction of Arwana Citramulia i.e., Arwana Citramulia and Dana Brata go up and down completely randomly.
Pair Corralation between Arwana Citramulia and Dana Brata
Assuming the 90 days trading horizon Arwana Citramulia Tbk is expected to under-perform the Dana Brata. But the stock apears to be less risky and, when comparing its historical volatility, Arwana Citramulia Tbk is 1.73 times less risky than Dana Brata. The stock trades about -0.28 of its potential returns per unit of risk. The Dana Brata Luhur is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 61,576 in Dana Brata Luhur on August 28, 2024 and sell it today you would earn a total of 1,924 from holding Dana Brata Luhur or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arwana Citramulia Tbk vs. Dana Brata Luhur
Performance |
| Timeline |
| Arwana Citramulia Tbk |
| Dana Brata Luhur |
Arwana Citramulia and Dana Brata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arwana Citramulia and Dana Brata
The main advantage of trading using opposite Arwana Citramulia and Dana Brata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arwana Citramulia position performs unexpectedly, Dana Brata 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 Dana Brata will offset losses from the drop in Dana Brata's long position.The idea behind Arwana Citramulia Tbk and Dana Brata Luhur 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.| Dana Brata vs. Pelita Samudera Shipping | Dana Brata vs. Trans Power Marine | Dana Brata vs. Kencana Energi Lestari | Dana Brata vs. Pelayaran Nelly Dwi |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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