Correlation Between Digital Mediatama and Tempo Inti
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Tempo Inti 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 Tempo Inti 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 Tempo Inti Media, you can compare the effects of market volatilities on Digital Mediatama and Tempo Inti 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 Tempo Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Tempo Inti.
Diversification Opportunities for Digital Mediatama and Tempo Inti
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and Tempo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Tempo Inti Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tempo Inti Media 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 Tempo Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tempo Inti Media has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Tempo Inti go up and down completely randomly.
Pair Corralation between Digital Mediatama and Tempo Inti
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 1.02 times more return on investment than Tempo Inti. However, Digital Mediatama is 1.02 times more volatile than Tempo Inti Media. It trades about 0.02 of its potential returns per unit of risk. Tempo Inti Media is currently generating about -0.21 per unit of risk. If you would invest 22,000 in Digital Mediatama Maxima on September 3, 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. Tempo Inti Media
Performance |
| Timeline |
| Digital Mediatama Maxima |
| Tempo Inti Media |
Digital Mediatama and Tempo Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Mediatama and Tempo Inti
The main advantage of trading using opposite Digital Mediatama and Tempo Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Tempo Inti 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 Tempo Inti will offset losses from the drop in Tempo Inti's long position.| Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti | Digital Mediatama vs. NFC Indonesia PT |
| Tempo Inti vs. Indosat Tbk | Tempo Inti vs. Energi Mega Persada | Tempo Inti vs. Mitra Pinasthika Mustika | Tempo Inti vs. Jakarta Int Hotels |
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 CEOs Directory module to screen CEOs from public companies around the world.
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