Correlation Between PT Dewi and Habco Trans
Can any of the company-specific risk be diversified away by investing in both PT Dewi and Habco Trans 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 Habco Trans 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 Habco Trans Maritima, you can compare the effects of market volatilities on PT Dewi and Habco Trans 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 Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and Habco Trans.
Diversification Opportunities for PT Dewi and Habco Trans
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DEWI and Habco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and Habco Trans Maritima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habco Trans Maritima 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 Habco Trans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habco Trans Maritima has no effect on the direction of PT Dewi i.e., PT Dewi and Habco Trans go up and down completely randomly.
Pair Corralation between PT Dewi and Habco Trans
Assuming the 90 days trading horizon PT Dewi Shri is expected to under-perform the Habco Trans. But the stock apears to be less risky and, when comparing its historical volatility, PT Dewi Shri is 3.24 times less risky than Habco Trans. The stock trades about -0.04 of its potential returns per unit of risk. The Habco Trans Maritima is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 29,000 in Habco Trans Maritima on August 28, 2024 and sell it today you would lose (400.00) from holding Habco Trans Maritima or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Dewi Shri vs. Habco Trans Maritima
Performance |
| Timeline |
| PT Dewi Shri |
| Habco Trans Maritima |
PT Dewi and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and Habco Trans
The main advantage of trading using opposite PT Dewi and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, Habco Trans 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 Habco Trans will offset losses from the drop in Habco Trans' long position.| PT Dewi vs. Dharma Satya Nusantara | PT Dewi vs. Saratoga Investama Sedaya | PT Dewi vs. Surya Esa Perkasa | PT Dewi vs. Elang Mahkota Teknologi |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |