Correlation Between Sepeda Bersama and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Sepeda Bersama and Dow Jones 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 Sepeda Bersama and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sepeda Bersama Indonesia and Dow Jones Industrial, you can compare the effects of market volatilities on Sepeda Bersama and Dow Jones 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 Sepeda Bersama with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sepeda Bersama and Dow Jones.
Diversification Opportunities for Sepeda Bersama and Dow Jones
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sepeda and Dow is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sepeda Bersama Indonesia and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Sepeda Bersama 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 Sepeda Bersama Indonesia are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Sepeda Bersama i.e., Sepeda Bersama and Dow Jones go up and down completely randomly.
Pair Corralation between Sepeda Bersama and Dow Jones
Assuming the 90 days trading horizon Sepeda Bersama Indonesia is expected to under-perform the Dow Jones. In addition to that, Sepeda Bersama is 1.49 times more volatile than Dow Jones Industrial. It trades about -0.18 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.34 per unit of volatility. If you would invest 4,205,219 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 285,846 from holding Dow Jones Industrial or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sepeda Bersama Indonesia vs. Dow Jones Industrial
Performance |
| Timeline |
Sepeda Bersama and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Sepeda Bersama Indonesia
Pair trading matchups for Sepeda Bersama
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Sepeda Bersama and Dow Jones
The main advantage of trading using opposite Sepeda Bersama and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sepeda Bersama position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Sepeda Bersama vs. Autopedia Sukses Lestari | Sepeda Bersama vs. Champ Resto Indonesia | Sepeda Bersama vs. Adhi Commuter Properti | Sepeda Bersama vs. GTS Internasional Tbk |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |