Correlation Between PT Dewi and PT Jhonlin
Can any of the company-specific risk be diversified away by investing in both PT Dewi and PT Jhonlin 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 Jhonlin 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 Jhonlin Agro, you can compare the effects of market volatilities on PT Dewi and PT Jhonlin 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 Jhonlin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and PT Jhonlin.
Diversification Opportunities for PT Dewi and PT Jhonlin
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DEWI and JARR is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and PT Jhonlin Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jhonlin Agro 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 Jhonlin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jhonlin Agro has no effect on the direction of PT Dewi i.e., PT Dewi and PT Jhonlin go up and down completely randomly.
Pair Corralation between PT Dewi and PT Jhonlin
Assuming the 90 days trading horizon PT Dewi Shri is expected to generate 0.75 times more return on investment than PT Jhonlin. However, PT Dewi Shri is 1.34 times less risky than PT Jhonlin. It trades about 0.06 of its potential returns per unit of risk. PT Jhonlin Agro is currently generating about 0.02 per unit of risk. If you would invest 5,600 in PT Dewi Shri on August 24, 2024 and sell it today you would earn a total of 2,700 from holding PT Dewi Shri or generate 48.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Dewi Shri vs. PT Jhonlin Agro
Performance |
| Timeline |
| PT Dewi Shri |
| PT Jhonlin Agro |
PT Dewi and PT Jhonlin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and PT Jhonlin
The main advantage of trading using opposite PT Dewi and PT Jhonlin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, PT Jhonlin 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 Jhonlin will offset losses from the drop in PT Jhonlin's 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 |
| PT Jhonlin vs. PT Dewi Shri | PT Jhonlin vs. Habco Trans Maritima | PT Jhonlin vs. PT Cilacap Samudera | PT Jhonlin vs. PT Sari Kreasi |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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