Correlation Between Delta Dunia and Astra Otoparts
Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Astra Otoparts 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 Dunia and Astra Otoparts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Dunia Makmur and Astra Otoparts Tbk, you can compare the effects of market volatilities on Delta Dunia and Astra Otoparts 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 Dunia with a short position of Astra Otoparts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Astra Otoparts.
Diversification Opportunities for Delta Dunia and Astra Otoparts
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Astra is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Astra Otoparts Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Otoparts Tbk and Delta Dunia 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 Dunia Makmur are associated (or correlated) with Astra Otoparts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Otoparts Tbk has no effect on the direction of Delta Dunia i.e., Delta Dunia and Astra Otoparts go up and down completely randomly.
Pair Corralation between Delta Dunia and Astra Otoparts
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to generate 1.29 times more return on investment than Astra Otoparts. However, Delta Dunia is 1.29 times more volatile than Astra Otoparts Tbk. It trades about 0.12 of its potential returns per unit of risk. Astra Otoparts Tbk is currently generating about 0.01 per unit of risk. If you would invest 34,278 in Delta Dunia Makmur on September 2, 2024 and sell it today you would earn a total of 33,222 from holding Delta Dunia Makmur or generate 96.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Dunia Makmur vs. Astra Otoparts Tbk
Performance |
| Timeline |
| Delta Dunia Makmur |
| Astra Otoparts Tbk |
Delta Dunia and Astra Otoparts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Astra Otoparts
The main advantage of trading using opposite Delta Dunia and Astra Otoparts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Astra Otoparts 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 Astra Otoparts will offset losses from the drop in Astra Otoparts' long position.| Delta Dunia vs. Mitrabahtera Segara Sejati | Delta Dunia vs. Weha Transportasi Indonesia | Delta Dunia vs. Rig Tenders Tbk |
| Astra Otoparts vs. Japfa Comfeed Indonesia | Astra Otoparts vs. Charoen Pokphand Indonesia | Astra Otoparts vs. Erajaya Swasembada Tbk | Astra Otoparts vs. Indofood Cbp Sukses |
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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