Correlation Between PT Dewi and Bangun Karya
Can any of the company-specific risk be diversified away by investing in both PT Dewi and Bangun Karya 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 Bangun Karya 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 Bangun Karya Perkasa, you can compare the effects of market volatilities on PT Dewi and Bangun Karya 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 Bangun Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and Bangun Karya.
Diversification Opportunities for PT Dewi and Bangun Karya
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DEWI and Bangun is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and Bangun Karya Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangun Karya Perkasa 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 Bangun Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangun Karya Perkasa has no effect on the direction of PT Dewi i.e., PT Dewi and Bangun Karya go up and down completely randomly.
Pair Corralation between PT Dewi and Bangun Karya
Assuming the 90 days trading horizon PT Dewi Shri is expected to under-perform the Bangun Karya. But the stock apears to be less risky and, when comparing its historical volatility, PT Dewi Shri is 1.73 times less risky than Bangun Karya. The stock trades about -0.16 of its potential returns per unit of risk. The Bangun Karya Perkasa is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Bangun Karya Perkasa on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Bangun Karya Perkasa or generate 0.0% 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. Bangun Karya Perkasa
Performance |
| Timeline |
| PT Dewi Shri |
| Bangun Karya Perkasa |
PT Dewi and Bangun Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and Bangun Karya
The main advantage of trading using opposite PT Dewi and Bangun Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, Bangun Karya 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 Bangun Karya will offset losses from the drop in Bangun Karya'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 |
| Bangun Karya vs. Indo Kordsa Tbk | Bangun Karya vs. Wilmar Cahaya Indonesia | Bangun Karya vs. Citra Marga Nusaphala | Bangun Karya vs. Darya Varia Laboratoria 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |