Correlation Between Cipta Selera and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Cipta Selera 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 Cipta Selera and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cipta Selera Murni and Dow Jones Industrial, you can compare the effects of market volatilities on Cipta Selera 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 Cipta Selera with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cipta Selera and Dow Jones.
Diversification Opportunities for Cipta Selera and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cipta and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cipta Selera Murni 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 Cipta Selera 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 Cipta Selera Murni 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 Cipta Selera i.e., Cipta Selera and Dow Jones go up and down completely randomly.
Pair Corralation between Cipta Selera and Dow Jones
Assuming the 90 days trading horizon Cipta Selera Murni is expected to generate 1.37 times more return on investment than Dow Jones. However, Cipta Selera is 1.37 times more volatile than Dow Jones Industrial. It trades about 0.3 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of risk. If you would invest 278,000 in Cipta Selera Murni on August 30, 2024 and sell it today you would earn a total of 24,000 from holding Cipta Selera Murni or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cipta Selera Murni vs. Dow Jones Industrial
Performance |
| Timeline |
Cipta Selera and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cipta Selera Murni
Pair trading matchups for Cipta Selera
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cipta Selera and Dow Jones
The main advantage of trading using opposite Cipta Selera and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cipta Selera 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.| Cipta Selera vs. Era Media Sejahtera | Cipta Selera vs. Dharma Polimetal Tbk | Cipta Selera vs. Mahaka Media Tbk | Cipta Selera vs. Lippo General Insurance |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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