Correlation Between Diamond Citra and Bima Sakti
Can any of the company-specific risk be diversified away by investing in both Diamond Citra and Bima 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 Bima 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 Bima Sakti Pertiwi, you can compare the effects of market volatilities on Diamond Citra and Bima 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 Bima Sakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diamond Citra and Bima Sakti.
Diversification Opportunities for Diamond Citra and Bima Sakti
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Diamond and Bima is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Diamond Citra Propertindo and Bima Sakti Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bima Sakti Pertiwi 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 Bima Sakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bima Sakti Pertiwi has no effect on the direction of Diamond Citra i.e., Diamond Citra and Bima Sakti go up and down completely randomly.
Pair Corralation between Diamond Citra and Bima Sakti
Assuming the 90 days trading horizon Diamond Citra Propertindo is expected to under-perform the Bima Sakti. In addition to that, Diamond Citra is 5.18 times more volatile than Bima Sakti Pertiwi. It trades about -0.03 of its total potential returns per unit of risk. Bima Sakti Pertiwi is currently generating about -0.04 per unit of volatility. If you would invest 5,200 in Bima Sakti Pertiwi on September 4, 2024 and sell it today you would lose (100.00) from holding Bima Sakti Pertiwi or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Diamond Citra Propertindo vs. Bima Sakti Pertiwi
Performance |
| Timeline |
| Diamond Citra Propertindo |
| Bima Sakti Pertiwi |
Diamond Citra and Bima Sakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diamond Citra and Bima Sakti
The main advantage of trading using opposite Diamond Citra and Bima Sakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diamond Citra position performs unexpectedly, Bima 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 Bima Sakti will offset losses from the drop in Bima Sakti's long position.| Diamond Citra vs. Bima Sakti Pertiwi | Diamond Citra vs. Karya Bersama Anugerah | Diamond Citra vs. Pollux Properti Indonesia | Diamond Citra vs. Surya Permata Andalan |
| Bima Sakti vs. Armidian Karyatama Tbk | Bima Sakti vs. J Resources Asia | Bima Sakti vs. Langgeng Makmur Industri | Bima Sakti vs. Mandala Multifinance Tbk |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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