Correlation Between Agro Yasa and Darmi Bersaudara
Can any of the company-specific risk be diversified away by investing in both Agro Yasa and Darmi Bersaudara 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 Agro Yasa and Darmi Bersaudara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agro Yasa Lestari and Darmi Bersaudara Tbk, you can compare the effects of market volatilities on Agro Yasa and Darmi Bersaudara 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 Agro Yasa with a short position of Darmi Bersaudara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agro Yasa and Darmi Bersaudara.
Diversification Opportunities for Agro Yasa and Darmi Bersaudara
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agro and Darmi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agro Yasa Lestari and Darmi Bersaudara Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Darmi Bersaudara Tbk and Agro Yasa 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 Agro Yasa Lestari are associated (or correlated) with Darmi Bersaudara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Darmi Bersaudara Tbk has no effect on the direction of Agro Yasa i.e., Agro Yasa and Darmi Bersaudara go up and down completely randomly.
Pair Corralation between Agro Yasa and Darmi Bersaudara
Assuming the 90 days trading horizon Agro Yasa Lestari is expected to generate 0.82 times more return on investment than Darmi Bersaudara. However, Agro Yasa Lestari is 1.22 times less risky than Darmi Bersaudara. It trades about -0.01 of its potential returns per unit of risk. Darmi Bersaudara Tbk is currently generating about -0.01 per unit of risk. If you would invest 11,600 in Agro Yasa Lestari on September 12, 2024 and sell it today you would lose (5,600) from holding Agro Yasa Lestari or give up 48.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Agro Yasa Lestari vs. Darmi Bersaudara Tbk
Performance |
| Timeline |
| Agro Yasa Lestari |
| Darmi Bersaudara Tbk |
Agro Yasa and Darmi Bersaudara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agro Yasa and Darmi Bersaudara
The main advantage of trading using opposite Agro Yasa and Darmi Bersaudara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agro Yasa position performs unexpectedly, Darmi Bersaudara 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 Darmi Bersaudara will offset losses from the drop in Darmi Bersaudara's long position.| Agro Yasa vs. Sinergi Inti Plastindo | Agro Yasa vs. Bank Amar Indonesia | Agro Yasa vs. Andalan Sakti Primaindo | Agro Yasa vs. Era Mandiri Cemerlang |
| Darmi Bersaudara vs. Gunung Raja Paksi | Darmi Bersaudara vs. Ifishdeco PT | Darmi Bersaudara vs. Saraswanti Anugerah Makmur | Darmi Bersaudara vs. Putra Mandiri Jembar |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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