Correlation Between PT Dafam and Mitra Pinasthika
Can any of the company-specific risk be diversified away by investing in both PT Dafam and Mitra Pinasthika 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 Dafam and Mitra Pinasthika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Dafam Property and Mitra Pinasthika Mustika, you can compare the effects of market volatilities on PT Dafam and Mitra Pinasthika 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 Dafam with a short position of Mitra Pinasthika. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Dafam and Mitra Pinasthika.
Diversification Opportunities for PT Dafam and Mitra Pinasthika
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DFAM and Mitra is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PT Dafam Property and Mitra Pinasthika Mustika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Pinasthika Mustika and PT Dafam 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 Dafam Property are associated (or correlated) with Mitra Pinasthika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Pinasthika Mustika has no effect on the direction of PT Dafam i.e., PT Dafam and Mitra Pinasthika go up and down completely randomly.
Pair Corralation between PT Dafam and Mitra Pinasthika
Assuming the 90 days trading horizon PT Dafam Property is expected to under-perform the Mitra Pinasthika. In addition to that, PT Dafam is 2.5 times more volatile than Mitra Pinasthika Mustika. It trades about -0.04 of its total potential returns per unit of risk. Mitra Pinasthika Mustika is currently generating about 0.03 per unit of volatility. If you would invest 93,163 in Mitra Pinasthika Mustika on September 12, 2024 and sell it today you would earn a total of 6,337 from holding Mitra Pinasthika Mustika or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Dafam Property vs. Mitra Pinasthika Mustika
Performance |
| Timeline |
| PT Dafam Property |
| Mitra Pinasthika Mustika |
PT Dafam and Mitra Pinasthika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Dafam and Mitra Pinasthika
The main advantage of trading using opposite PT Dafam and Mitra Pinasthika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Dafam position performs unexpectedly, Mitra Pinasthika 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 Mitra Pinasthika will offset losses from the drop in Mitra Pinasthika's long position.| PT Dafam vs. Batavia Prosperindo Trans | PT Dafam vs. MD Pictures Tbk | PT Dafam vs. Bintang Oto Global | PT Dafam vs. Arkadia Digital Media |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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