Correlation Between Darma Henwa and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Darma Henwa and Sanurhasta 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 Darma Henwa and Sanurhasta Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Darma Henwa Tbk and Sanurhasta Mitra PT, you can compare the effects of market volatilities on Darma Henwa and Sanurhasta 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 Darma Henwa with a short position of Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Darma Henwa and Sanurhasta Mitra.
Diversification Opportunities for Darma Henwa and Sanurhasta Mitra
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Darma and Sanurhasta is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Darma Henwa Tbk and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra and Darma Henwa 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 Darma Henwa Tbk are associated (or correlated) with Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Darma Henwa i.e., Darma Henwa and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Darma Henwa and Sanurhasta Mitra
Assuming the 90 days trading horizon Darma Henwa is expected to generate 1.01 times less return on investment than Sanurhasta Mitra. In addition to that, Darma Henwa is 1.62 times more volatile than Sanurhasta Mitra PT. It trades about 0.17 of its total potential returns per unit of risk. Sanurhasta Mitra PT is currently generating about 0.28 per unit of volatility. If you would invest 2,300 in Sanurhasta Mitra PT on August 30, 2024 and sell it today you would earn a total of 600.00 from holding Sanurhasta Mitra PT or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Darma Henwa Tbk vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Darma Henwa Tbk |
| Sanurhasta Mitra |
Darma Henwa and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Darma Henwa and Sanurhasta Mitra
The main advantage of trading using opposite Darma Henwa and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Darma Henwa position performs unexpectedly, Sanurhasta 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra's long position.| Darma Henwa vs. Bakrieland Development Tbk | Darma Henwa vs. Energi Mega Persada | Darma Henwa vs. Bakrie Brothers Tbk | Darma Henwa vs. Bakrie Sumatera Plantations |
| Sanurhasta Mitra vs. Bakrie Brothers Tbk | Sanurhasta Mitra vs. Bakrie Sumatera Plantations | Sanurhasta Mitra vs. Energi Mega Persada | Sanurhasta Mitra vs. Darma Henwa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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