Correlation Between Nusantara Voucher and Digital Mediatama
Can any of the company-specific risk be diversified away by investing in both Nusantara Voucher and Digital Mediatama 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 Nusantara Voucher and Digital Mediatama into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nusantara Voucher Distribution and Digital Mediatama Maxima, you can compare the effects of market volatilities on Nusantara Voucher and Digital Mediatama 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 Nusantara Voucher with a short position of Digital Mediatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nusantara Voucher and Digital Mediatama.
Diversification Opportunities for Nusantara Voucher and Digital Mediatama
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nusantara and Digital is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nusantara Voucher Distribution and Digital Mediatama Maxima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Mediatama Maxima and Nusantara Voucher 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 Nusantara Voucher Distribution are associated (or correlated) with Digital Mediatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Mediatama Maxima has no effect on the direction of Nusantara Voucher i.e., Nusantara Voucher and Digital Mediatama go up and down completely randomly.
Pair Corralation between Nusantara Voucher and Digital Mediatama
Assuming the 90 days trading horizon Nusantara Voucher Distribution is expected to under-perform the Digital Mediatama. But the stock apears to be less risky and, when comparing its historical volatility, Nusantara Voucher Distribution is 1.92 times less risky than Digital Mediatama. The stock trades about -0.38 of its potential returns per unit of risk. The Digital Mediatama Maxima is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 24,200 in Digital Mediatama Maxima on November 2, 2024 and sell it today you would lose (1,600) from holding Digital Mediatama Maxima or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nusantara Voucher Distribution vs. Digital Mediatama Maxima
Performance |
| Timeline |
| Nusantara Voucher |
| Digital Mediatama Maxima |
Nusantara Voucher and Digital Mediatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nusantara Voucher and Digital Mediatama
The main advantage of trading using opposite Nusantara Voucher and Digital Mediatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nusantara Voucher position performs unexpectedly, Digital Mediatama 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 Digital Mediatama will offset losses from the drop in Digital Mediatama's long position.| Nusantara Voucher vs. M Cash Integrasi | Nusantara Voucher vs. NFC Indonesia PT | Nusantara Voucher vs. Digital Mediatama Maxima | Nusantara Voucher vs. Kioson Komersial Indonesia |
| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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