Correlation Between Digital Mediatama and Nusantara Voucher
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Nusantara Voucher 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 Digital Mediatama and Nusantara Voucher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and Nusantara Voucher Distribution, you can compare the effects of market volatilities on Digital Mediatama and Nusantara Voucher 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 Digital Mediatama with a short position of Nusantara Voucher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Nusantara Voucher.
Diversification Opportunities for Digital Mediatama and Nusantara Voucher
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digital and Nusantara is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Nusantara Voucher Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusantara Voucher and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with Nusantara Voucher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusantara Voucher has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Nusantara Voucher go up and down completely randomly.
Pair Corralation between Digital Mediatama and Nusantara Voucher
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 1.59 times more return on investment than Nusantara Voucher. However, Digital Mediatama is 1.59 times more volatile than Nusantara Voucher Distribution. It trades about -0.16 of its potential returns per unit of risk. Nusantara Voucher Distribution is currently generating about -0.3 per unit of risk. If you would invest 22,800 in Digital Mediatama Maxima on October 21, 2024 and sell it today you would lose (2,400) from holding Digital Mediatama Maxima or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. Nusantara Voucher Distribution
Performance |
| Timeline |
| Digital Mediatama Maxima |
| Nusantara Voucher |
Digital Mediatama and Nusantara Voucher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and Nusantara Voucher
The main advantage of trading using opposite Digital Mediatama and Nusantara Voucher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Nusantara Voucher 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 Nusantara Voucher will offset losses from the drop in Nusantara Voucher's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti |
| Nusantara Voucher vs. M Cash Integrasi | Nusantara Voucher vs. NFC Indonesia PT | Nusantara Voucher vs. Digital Mediatama Maxima | Nusantara Voucher vs. Kioson Komersial 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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