Correlation Between Duta Anggada and Duta Pertiwi
Can any of the company-specific risk be diversified away by investing in both Duta Anggada and Duta Pertiwi 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 Duta Anggada and Duta Pertiwi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duta Anggada Realty and Duta Pertiwi Tbk, you can compare the effects of market volatilities on Duta Anggada and Duta Pertiwi 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 Duta Anggada with a short position of Duta Pertiwi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Anggada and Duta Pertiwi.
Diversification Opportunities for Duta Anggada and Duta Pertiwi
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duta and Duta is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Duta Anggada Realty and Duta Pertiwi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duta Pertiwi Tbk and Duta Anggada 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 Duta Anggada Realty are associated (or correlated) with Duta Pertiwi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duta Pertiwi Tbk has no effect on the direction of Duta Anggada i.e., Duta Anggada and Duta Pertiwi go up and down completely randomly.
Pair Corralation between Duta Anggada and Duta Pertiwi
Assuming the 90 days trading horizon Duta Anggada Realty is expected to generate 2.93 times more return on investment than Duta Pertiwi. However, Duta Anggada is 2.93 times more volatile than Duta Pertiwi Tbk. It trades about 0.03 of its potential returns per unit of risk. Duta Pertiwi Tbk is currently generating about 0.0 per unit of risk. If you would invest 17,600 in Duta Anggada Realty on August 27, 2024 and sell it today you would earn a total of 800.00 from holding Duta Anggada Realty or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.77% |
| Values | Daily Returns |
Duta Anggada Realty vs. Duta Pertiwi Tbk
Performance |
| Timeline |
| Duta Anggada Realty |
| Duta Pertiwi Tbk |
Duta Anggada and Duta Pertiwi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Anggada and Duta Pertiwi
The main advantage of trading using opposite Duta Anggada and Duta Pertiwi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Anggada position performs unexpectedly, Duta Pertiwi 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 Duta Pertiwi will offset losses from the drop in Duta Pertiwi's long position.| Duta Anggada vs. Bhuwanatala Indah Permai | Duta Anggada vs. Duta Pertiwi Tbk | Duta Anggada vs. Intiland Development Tbk | Duta Anggada vs. Bukit Darmo Property |
| Duta Pertiwi vs. Duta Anggada Realty | Duta Pertiwi vs. Intiland Development Tbk | Duta Pertiwi vs. Bhuwanatala Indah Permai | Duta Pertiwi vs. Fortune Mate Indonesia |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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