Correlation Between PT Dewi and PT Jobubu
Can any of the company-specific risk be diversified away by investing in both PT Dewi and PT Jobubu 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 PT Dewi and PT Jobubu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Dewi Shri and PT Jobubu Jarum, you can compare the effects of market volatilities on PT Dewi and PT Jobubu 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 PT Dewi with a short position of PT Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and PT Jobubu.
Diversification Opportunities for PT Dewi and PT Jobubu
Very good diversification
The 3 months correlation between DEWI and BEER is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum and PT Dewi 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 PT Dewi Shri are associated (or correlated) with PT Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of PT Dewi i.e., PT Dewi and PT Jobubu go up and down completely randomly.
Pair Corralation between PT Dewi and PT Jobubu
Assuming the 90 days trading horizon PT Dewi Shri is expected to generate 1.49 times more return on investment than PT Jobubu. However, PT Dewi is 1.49 times more volatile than PT Jobubu Jarum. It trades about 0.07 of its potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.1 per unit of risk. If you would invest 6,600 in PT Dewi Shri on August 30, 2024 and sell it today you would earn a total of 1,800 from holding PT Dewi Shri or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Dewi Shri vs. PT Jobubu Jarum
Performance |
| Timeline |
| PT Dewi Shri |
| PT Jobubu Jarum |
PT Dewi and PT Jobubu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and PT Jobubu
The main advantage of trading using opposite PT Dewi and PT Jobubu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, PT Jobubu 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 Jobubu will offset losses from the drop in PT Jobubu's long position.| PT Dewi vs. PT Cilacap Samudera | PT Dewi vs. Habco Trans Maritima | PT Dewi vs. PT Arkora Hydro | PT Dewi vs. PT Jhonlin Agro |
| PT Jobubu vs. Alumindo Light Metal | PT Jobubu vs. Pertamina Geothermal Energy | PT Jobubu vs. Indonesian Tobacco Tbk | PT Jobubu vs. Era Media Sejahtera |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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