Correlation Between Delta Djakarta and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Delta Djakarta and Akr Corporindo 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 Delta Djakarta and Akr Corporindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Djakarta Tbk and Akr Corporindo Tbk, you can compare the effects of market volatilities on Delta Djakarta and Akr Corporindo 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 Delta Djakarta with a short position of Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Djakarta and Akr Corporindo.
Diversification Opportunities for Delta Djakarta and Akr Corporindo
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delta and Akr is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Delta Djakarta Tbk and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo Tbk and Delta Djakarta 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 Delta Djakarta Tbk are associated (or correlated) with Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Delta Djakarta i.e., Delta Djakarta and Akr Corporindo go up and down completely randomly.
Pair Corralation between Delta Djakarta and Akr Corporindo
Assuming the 90 days trading horizon Delta Djakarta Tbk is expected to under-perform the Akr Corporindo. But the stock apears to be less risky and, when comparing its historical volatility, Delta Djakarta Tbk is 1.95 times less risky than Akr Corporindo. The stock trades about -0.12 of its potential returns per unit of risk. The Akr Corporindo Tbk is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 124,672 in Akr Corporindo Tbk on September 1, 2024 and sell it today you would lose (1,672) from holding Akr Corporindo Tbk or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.44% |
| Values | Daily Returns |
Delta Djakarta Tbk vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Delta Djakarta Tbk |
| Akr Corporindo Tbk |
Delta Djakarta and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Djakarta and Akr Corporindo
The main advantage of trading using opposite Delta Djakarta and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Djakarta position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Delta Djakarta vs. Multi Bintang Indonesia | Delta Djakarta vs. Wilmar Cahaya Indonesia | Delta Djakarta vs. Darya Varia Laboratoria Tbk | Delta Djakarta vs. Akasha Wira International |
| Akr Corporindo vs. Charoen Pokphand Indonesia | Akr Corporindo vs. Indocement Tunggal Prakarsa | Akr Corporindo vs. Bumi Serpong Damai | Akr Corporindo vs. Jasa Marga 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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