Correlation Between Buana Listya and Dyandra Media
Can any of the company-specific risk be diversified away by investing in both Buana Listya 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 Buana Listya and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Buana Listya Tama and Dyandra Media International, you can compare the effects of market volatilities on Buana Listya 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 Buana Listya with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Buana Listya and Dyandra Media.
Diversification Opportunities for Buana Listya and Dyandra Media
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Buana and Dyandra is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Buana Listya Tama 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 Buana Listya 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 Buana Listya Tama 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 Buana Listya i.e., Buana Listya and Dyandra Media go up and down completely randomly.
Pair Corralation between Buana Listya and Dyandra Media
Assuming the 90 days trading horizon Buana Listya Tama is expected to generate 2.11 times more return on investment than Dyandra Media. However, Buana Listya is 2.11 times more volatile than Dyandra Media International. It trades about 0.06 of its potential returns per unit of risk. Dyandra Media International is currently generating about -0.18 per unit of risk. If you would invest 10,600 in Buana Listya Tama on September 2, 2024 and sell it today you would earn a total of 300.00 from holding Buana Listya Tama or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Buana Listya Tama vs. Dyandra Media International
Performance |
| Timeline |
| Buana Listya Tama |
| Dyandra Media Intern |
Buana Listya and Dyandra Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Buana Listya and Dyandra Media
The main advantage of trading using opposite Buana Listya and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Buana Listya 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.| Buana Listya vs. Matahari Department Store | Buana Listya vs. Multi Medika Internasional | Buana Listya vs. Visi Media Asia | Buana Listya vs. Bayan Resources Tbk |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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