Correlation Between Diagnos Laboratorium and Damai Sejahtera
Can any of the company-specific risk be diversified away by investing in both Diagnos Laboratorium and Damai Sejahtera 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 Diagnos Laboratorium and Damai Sejahtera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diagnos Laboratorium Utama and Damai Sejahtera Abadi, you can compare the effects of market volatilities on Diagnos Laboratorium and Damai Sejahtera 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 Diagnos Laboratorium with a short position of Damai Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diagnos Laboratorium and Damai Sejahtera.
Diversification Opportunities for Diagnos Laboratorium and Damai Sejahtera
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Diagnos and Damai is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Diagnos Laboratorium Utama and Damai Sejahtera Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damai Sejahtera Abadi and Diagnos Laboratorium 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 Diagnos Laboratorium Utama are associated (or correlated) with Damai Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damai Sejahtera Abadi has no effect on the direction of Diagnos Laboratorium i.e., Diagnos Laboratorium and Damai Sejahtera go up and down completely randomly.
Pair Corralation between Diagnos Laboratorium and Damai Sejahtera
Assuming the 90 days trading horizon Diagnos Laboratorium Utama is expected to under-perform the Damai Sejahtera. In addition to that, Diagnos Laboratorium is 1.17 times more volatile than Damai Sejahtera Abadi. It trades about -0.24 of its total potential returns per unit of risk. Damai Sejahtera Abadi is currently generating about 0.18 per unit of volatility. If you would invest 27,600 in Damai Sejahtera Abadi on September 1, 2024 and sell it today you would earn a total of 3,200 from holding Damai Sejahtera Abadi or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Diagnos Laboratorium Utama vs. Damai Sejahtera Abadi
Performance |
| Timeline |
| Diagnos Laboratorium |
| Damai Sejahtera Abadi |
Diagnos Laboratorium and Damai Sejahtera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diagnos Laboratorium and Damai Sejahtera
The main advantage of trading using opposite Diagnos Laboratorium and Damai Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diagnos Laboratorium position performs unexpectedly, Damai Sejahtera 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 Damai Sejahtera will offset losses from the drop in Damai Sejahtera's long position.| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Itama Ranoraya | Diagnos Laboratorium vs. Digital Mediatama Maxima |
| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama | Damai Sejahtera vs. Bank Net Indonesia |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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