Correlation Between Global Mediacom and Dyandra Media
Can any of the company-specific risk be diversified away by investing in both Global Mediacom and Dyandra Media 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 Global Mediacom and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Mediacom Tbk and Dyandra Media International, you can compare the effects of market volatilities on Global Mediacom and Dyandra Media 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 Global Mediacom with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Mediacom and Dyandra Media.
Diversification Opportunities for Global Mediacom and Dyandra Media
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Dyandra is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Global Mediacom Tbk and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern and Global Mediacom 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 Global Mediacom Tbk are associated (or correlated) with Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of Global Mediacom i.e., Global Mediacom and Dyandra Media go up and down completely randomly.
Pair Corralation between Global Mediacom and Dyandra Media
Assuming the 90 days trading horizon Global Mediacom Tbk is expected to under-perform the Dyandra Media. But the stock apears to be less risky and, when comparing its historical volatility, Global Mediacom Tbk is 1.5 times less risky than Dyandra Media. The stock trades about -0.05 of its potential returns per unit of risk. The Dyandra Media International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,300 in Dyandra Media International on November 28, 2024 and sell it today you would earn a total of 800.00 from holding Dyandra Media International or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Global Mediacom Tbk vs. Dyandra Media International
Performance |
| Timeline |
| Global Mediacom Tbk |
| Dyandra Media Intern |
Global Mediacom and Dyandra Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Mediacom and Dyandra Media
The main advantage of trading using opposite Global Mediacom and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Mediacom position performs unexpectedly, Dyandra Media 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 Dyandra Media will offset losses from the drop in Dyandra Media's long position.| Global Mediacom vs. Mitra Keluarga Karyasehat | Global Mediacom vs. Surya Citra Media | Global Mediacom vs. Matahari Department Store | Global Mediacom vs. Puradelta Lestari PT |
| Dyandra Media vs. Electronic City Indonesia | Dyandra Media vs. Steel Pipe Industry | Dyandra Media vs. Visi Media Asia | Dyandra Media vs. Bekasi Fajar Industrial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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