Correlation Between Delta Dunia and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Delta Dunia and Exploitasi Energi 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 Exploitasi Energi 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 Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Delta Dunia and Exploitasi Energi 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 Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Dunia and Exploitasi Energi.
Diversification Opportunities for Delta Dunia and Exploitasi Energi
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and Exploitasi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Delta Dunia Makmur and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi 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 Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Delta Dunia i.e., Delta Dunia and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Delta Dunia and Exploitasi Energi
Assuming the 90 days trading horizon Delta Dunia Makmur is expected to under-perform the Exploitasi Energi. But the stock apears to be less risky and, when comparing its historical volatility, Delta Dunia Makmur is 2.9 times less risky than Exploitasi Energi. The stock trades about -0.03 of its potential returns per unit of risk. The Exploitasi Energi Indonesia is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Exploitasi Energi Indonesia on September 14, 2024 and sell it today you would earn a total of 600.00 from holding Exploitasi Energi Indonesia or generate 85.71% 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. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Delta Dunia Makmur |
| Exploitasi Energi |
Delta Dunia and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Dunia and Exploitasi Energi
The main advantage of trading using opposite Delta Dunia and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Dunia position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Delta Dunia vs. Indika Energy Tbk | Delta Dunia vs. Elnusa Tbk | Delta Dunia vs. Harum Energy Tbk | Delta Dunia vs. Energi Mega Persada |
| Exploitasi Energi vs. Harum Energy Tbk | Exploitasi Energi vs. Delta Dunia Makmur | Exploitasi Energi vs. Adi Sarana Armada | Exploitasi Energi vs. Elang Mahkota Teknologi |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |