Correlation Between Diamond Citra and Andalan Sakti
Can any of the company-specific risk be diversified away by investing in both Diamond Citra and Andalan Sakti 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 Diamond Citra and Andalan Sakti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diamond Citra Propertindo and Andalan Sakti Primaindo, you can compare the effects of market volatilities on Diamond Citra and Andalan Sakti 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 Diamond Citra with a short position of Andalan Sakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Citra and Andalan Sakti.
Diversification Opportunities for Diamond Citra and Andalan Sakti
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Diamond and Andalan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Citra Propertindo and Andalan Sakti Primaindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andalan Sakti Primaindo and Diamond Citra 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 Diamond Citra Propertindo are associated (or correlated) with Andalan Sakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andalan Sakti Primaindo has no effect on the direction of Diamond Citra i.e., Diamond Citra and Andalan Sakti go up and down completely randomly.
Pair Corralation between Diamond Citra and Andalan Sakti
Assuming the 90 days trading horizon Diamond Citra Propertindo is expected to under-perform the Andalan Sakti. In addition to that, Diamond Citra is 2.71 times more volatile than Andalan Sakti Primaindo. It trades about -0.01 of its total potential returns per unit of risk. Andalan Sakti Primaindo is currently generating about 0.03 per unit of volatility. If you would invest 15,500 in Andalan Sakti Primaindo on September 2, 2024 and sell it today you would earn a total of 2,000 from holding Andalan Sakti Primaindo or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diamond Citra Propertindo vs. Andalan Sakti Primaindo
Performance |
| Timeline |
| Diamond Citra Propertindo |
| Andalan Sakti Primaindo |
Diamond Citra and Andalan Sakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Citra and Andalan Sakti
The main advantage of trading using opposite Diamond Citra and Andalan Sakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Citra position performs unexpectedly, Andalan Sakti 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 Andalan Sakti will offset losses from the drop in Andalan Sakti's long position.| Diamond Citra vs. Perintis Triniti Properti | Diamond Citra vs. Satria Mega Kencana | Diamond Citra vs. Sunindo Adipersada Tbk | Diamond Citra vs. Jaya Sukses Makmur |
| Andalan Sakti vs. Bumi Benowo Sukses | Andalan Sakti vs. Makmur Berkah Amanda | Andalan Sakti vs. Royalindo Investa Wijaya | Andalan Sakti vs. Cahayaputra Asa Keramik |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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