Correlation Between Dillards Capital and PT Mitra
Can any of the company-specific risk be diversified away by investing in both Dillards Capital and PT Mitra 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 Dillards Capital and PT Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dillards Capital Trust and PT Mitra Adiperkasa, you can compare the effects of market volatilities on Dillards Capital and PT Mitra 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 Dillards Capital with a short position of PT Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards Capital and PT Mitra.
Diversification Opportunities for Dillards Capital and PT Mitra
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dillards and PMDKF is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dillards Capital Trust and PT Mitra Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mitra Adiperkasa and Dillards Capital 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 Dillards Capital Trust are associated (or correlated) with PT Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mitra Adiperkasa has no effect on the direction of Dillards Capital i.e., Dillards Capital and PT Mitra go up and down completely randomly.
Pair Corralation between Dillards Capital and PT Mitra
If you would invest 2,534 in Dillards Capital Trust on November 2, 2024 and sell it today you would earn a total of 56.00 from holding Dillards Capital Trust or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Dillards Capital Trust vs. PT Mitra Adiperkasa
Performance |
| Timeline |
| Dillards Capital Trust |
| PT Mitra Adiperkasa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dillards Capital and PT Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dillards Capital and PT Mitra
The main advantage of trading using opposite Dillards Capital and PT Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dillards Capital position performs unexpectedly, PT Mitra 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 PT Mitra will offset losses from the drop in PT Mitra's long position.| Dillards Capital vs. Prudential Financial 4125 | Dillards Capital vs. Credit Enhanced Corts | Dillards Capital vs. Strats Trust Cellular | Dillards Capital vs. Structured Products Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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