Correlation Between Digital Mediatama and Ramayana Lestari
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Ramayana Lestari 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 Ramayana Lestari 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 Ramayana Lestari Sentosa, you can compare the effects of market volatilities on Digital Mediatama and Ramayana Lestari 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 Ramayana Lestari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Ramayana Lestari.
Diversification Opportunities for Digital Mediatama and Ramayana Lestari
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and Ramayana is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Ramayana Lestari Sentosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramayana Lestari Sentosa 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 Ramayana Lestari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramayana Lestari Sentosa has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Ramayana Lestari go up and down completely randomly.
Pair Corralation between Digital Mediatama and Ramayana Lestari
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 5.91 times more return on investment than Ramayana Lestari. However, Digital Mediatama is 5.91 times more volatile than Ramayana Lestari Sentosa. It trades about 0.02 of its potential returns per unit of risk. Ramayana Lestari Sentosa is currently generating about 0.08 per unit of risk. If you would invest 22,400 in Digital Mediatama Maxima on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Digital Mediatama Maxima or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Mediatama Maxima vs. Ramayana Lestari Sentosa
Performance |
| Timeline |
| Digital Mediatama Maxima |
| Ramayana Lestari Sentosa |
Digital Mediatama and Ramayana Lestari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and Ramayana Lestari
The main advantage of trading using opposite Digital Mediatama and Ramayana Lestari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Ramayana Lestari 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 Ramayana Lestari will offset losses from the drop in Ramayana Lestari'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 |
| Ramayana Lestari vs. Mitra Adiperkasa Tbk | Ramayana Lestari vs. Matahari Putra Prima | Ramayana Lestari vs. Summarecon Agung Tbk | Ramayana Lestari vs. Ciputra Development 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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