Correlation Between Dupont De and Bank Ganesha
Can any of the company-specific risk be diversified away by investing in both Dupont De and Bank Ganesha 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 Dupont De and Bank Ganesha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Bank Ganesha Tbk, you can compare the effects of market volatilities on Dupont De and Bank Ganesha 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 Dupont De with a short position of Bank Ganesha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Bank Ganesha.
Diversification Opportunities for Dupont De and Bank Ganesha
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Bank is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Bank Ganesha Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ganesha Tbk and Dupont De 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 Dupont De Nemours are associated (or correlated) with Bank Ganesha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ganesha Tbk has no effect on the direction of Dupont De i.e., Dupont De and Bank Ganesha go up and down completely randomly.
Pair Corralation between Dupont De and Bank Ganesha
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.76 times more return on investment than Bank Ganesha. However, Dupont De Nemours is 1.32 times less risky than Bank Ganesha. It trades about -0.02 of its potential returns per unit of risk. Bank Ganesha Tbk is currently generating about -0.1 per unit of risk. If you would invest 8,423 in Dupont De Nemours on August 25, 2024 and sell it today you would lose (91.00) from holding Dupont De Nemours or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Bank Ganesha Tbk
Performance |
| Timeline |
| Dupont De Nemours |
| Bank Ganesha Tbk |
Dupont De and Bank Ganesha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Bank Ganesha
The main advantage of trading using opposite Dupont De and Bank Ganesha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Bank Ganesha 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 Bank Ganesha will offset losses from the drop in Bank Ganesha's long position.| Dupont De vs. Eshallgo Class A | Dupont De vs. Amtech Systems | Dupont De vs. Gold Fields Ltd | Dupont De vs. Aegean Airlines SA |
| Bank Ganesha vs. Bk Harda Internasional | Bank Ganesha vs. Bank Yudha Bhakti | Bank Ganesha vs. Bank Mnc Internasional | Bank Ganesha vs. Bank Capital 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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