Correlation Between Borneo Olah and Digital Mediatama
Can any of the company-specific risk be diversified away by investing in both Borneo Olah and Digital Mediatama 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 Borneo Olah and Digital Mediatama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borneo Olah Sarana and Digital Mediatama Maxima, you can compare the effects of market volatilities on Borneo Olah and Digital Mediatama 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 Borneo Olah with a short position of Digital Mediatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borneo Olah and Digital Mediatama.
Diversification Opportunities for Borneo Olah and Digital Mediatama
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borneo and Digital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Borneo Olah Sarana and Digital Mediatama Maxima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Mediatama Maxima and Borneo Olah 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 Borneo Olah Sarana are associated (or correlated) with Digital Mediatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Mediatama Maxima has no effect on the direction of Borneo Olah i.e., Borneo Olah and Digital Mediatama go up and down completely randomly.
Pair Corralation between Borneo Olah and Digital Mediatama
Assuming the 90 days trading horizon Borneo Olah Sarana is expected to generate 0.21 times more return on investment than Digital Mediatama. However, Borneo Olah Sarana is 4.77 times less risky than Digital Mediatama. It trades about -0.03 of its potential returns per unit of risk. Digital Mediatama Maxima is currently generating about -0.01 per unit of risk. If you would invest 5,900 in Borneo Olah Sarana on November 28, 2024 and sell it today you would lose (900.00) from holding Borneo Olah Sarana or give up 15.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borneo Olah Sarana vs. Digital Mediatama Maxima
Performance |
| Timeline |
| Borneo Olah Sarana |
| Digital Mediatama Maxima |
Borneo Olah and Digital Mediatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borneo Olah and Digital Mediatama
The main advantage of trading using opposite Borneo Olah and Digital Mediatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borneo Olah position performs unexpectedly, Digital Mediatama 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 Digital Mediatama will offset losses from the drop in Digital Mediatama's long position.| Borneo Olah vs. Alfa Energi Investama | Borneo Olah vs. Atlas Resources Tbk | Borneo Olah vs. Baramulti Suksessarana Tbk | Borneo Olah vs. Kapuas Prima Coal |
| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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