Correlation Between Tera Data and PT Dewi
Can any of the company-specific risk be diversified away by investing in both Tera Data and PT Dewi 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 Tera Data and PT Dewi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tera Data Indonusa and PT Dewi Shri, you can compare the effects of market volatilities on Tera Data and PT Dewi 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 Tera Data with a short position of PT Dewi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tera Data and PT Dewi.
Diversification Opportunities for Tera Data and PT Dewi
Very good diversification
The 3 months correlation between Tera and DEWI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tera Data Indonusa and PT Dewi Shri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Dewi Shri and Tera Data 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 Tera Data Indonusa are associated (or correlated) with PT Dewi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Dewi Shri has no effect on the direction of Tera Data i.e., Tera Data and PT Dewi go up and down completely randomly.
Pair Corralation between Tera Data and PT Dewi
Assuming the 90 days trading horizon Tera Data Indonusa is expected to generate 1.51 times more return on investment than PT Dewi. However, Tera Data is 1.51 times more volatile than PT Dewi Shri. It trades about 0.12 of its potential returns per unit of risk. PT Dewi Shri is currently generating about 0.01 per unit of risk. If you would invest 11,716 in Tera Data Indonusa on September 2, 2024 and sell it today you would earn a total of 484.00 from holding Tera Data Indonusa or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tera Data Indonusa vs. PT Dewi Shri
Performance |
| Timeline |
| Tera Data Indonusa |
| PT Dewi Shri |
Tera Data and PT Dewi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tera Data and PT Dewi
The main advantage of trading using opposite Tera Data and PT Dewi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tera Data position performs unexpectedly, PT Dewi 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 PT Dewi will offset losses from the drop in PT Dewi's long position.| Tera Data vs. PT Dewi Shri | Tera Data vs. Habco Trans Maritima | Tera Data vs. PT Jhonlin Agro | Tera Data vs. Autopedia Sukses Lestari |
| PT Dewi vs. Habco Trans Maritima | PT Dewi vs. PT Cilacap Samudera | PT Dewi vs. PT Sari Kreasi | PT Dewi vs. Autopedia Sukses Lestari |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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