Correlation Between PT Dewi and Meta Epsi
Can any of the company-specific risk be diversified away by investing in both PT Dewi and Meta Epsi 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 Meta Epsi 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 Meta Epsi Tbk, you can compare the effects of market volatilities on PT Dewi and Meta Epsi 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 Meta Epsi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dewi and Meta Epsi.
Diversification Opportunities for PT Dewi and Meta Epsi
Pay attention - limited upside
The 3 months correlation between DEWI and Meta is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding PT Dewi Shri and Meta Epsi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Epsi Tbk 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 Meta Epsi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Epsi Tbk has no effect on the direction of PT Dewi i.e., PT Dewi and Meta Epsi go up and down completely randomly.
Pair Corralation between PT Dewi and Meta Epsi
Assuming the 90 days trading horizon PT Dewi Shri is expected to generate 0.77 times more return on investment than Meta Epsi. However, PT Dewi Shri is 1.3 times less risky than Meta Epsi. It trades about -0.02 of its potential returns per unit of risk. Meta Epsi Tbk is currently generating about -0.04 per unit of risk. If you would invest 21,600 in PT Dewi Shri on September 12, 2024 and sell it today you would lose (13,200) from holding PT Dewi Shri or give up 61.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
PT Dewi Shri vs. Meta Epsi Tbk
Performance |
| Timeline |
| PT Dewi Shri |
| Meta Epsi Tbk |
PT Dewi and Meta Epsi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dewi and Meta Epsi
The main advantage of trading using opposite PT Dewi and Meta Epsi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dewi position performs unexpectedly, Meta Epsi 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 Meta Epsi will offset losses from the drop in Meta Epsi'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 |
| Meta Epsi vs. PT Hetzer Medical | Meta Epsi vs. PT Dewi Shri | Meta Epsi vs. PT Sari Kreasi | Meta Epsi vs. Gaya Abadi Sempurna |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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