Correlation Between PT Dewi and PT Puri
Can any of the company-specific risk be diversified away by investing in both PT Dewi and PT Puri 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 Puri 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 Puri Sentul, you can compare the effects of market volatilities on PT Dewi and PT Puri 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 Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and PT Puri.
Diversification Opportunities for PT Dewi and PT Puri
Good diversification
The 3 months correlation between DEWI and KDTN is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul 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 Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of PT Dewi i.e., PT Dewi and PT Puri go up and down completely randomly.
Pair Corralation between PT Dewi and PT Puri
Assuming the 90 days trading horizon PT Dewi Shri is expected to generate 0.58 times more return on investment than PT Puri. However, PT Dewi Shri is 1.71 times less risky than PT Puri. It trades about 0.0 of its potential returns per unit of risk. PT Puri Sentul is currently generating about -0.09 per unit of risk. If you would invest 8,400 in PT Dewi Shri on August 30, 2024 and sell it today you would lose (100.00) from holding PT Dewi Shri or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Dewi Shri vs. PT Puri Sentul
Performance |
| Timeline |
| PT Dewi Shri |
| PT Puri Sentul |
PT Dewi and PT Puri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and PT Puri
The main advantage of trading using opposite PT Dewi and PT Puri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, PT Puri 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 Puri will offset losses from the drop in PT Puri'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 Puri vs. PT Dewi Shri | PT Puri vs. Bangun Karya Perkasa | PT Puri vs. Gaya Abadi Sempurna | PT Puri vs. Habco Trans Maritima |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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