Correlation Between Duta Pertiwi and Timah Persero
Can any of the company-specific risk be diversified away by investing in both Duta Pertiwi and Timah Persero 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 Duta Pertiwi and Timah Persero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duta Pertiwi Nusantara and Timah Persero Tbk, you can compare the effects of market volatilities on Duta Pertiwi and Timah Persero 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 Duta Pertiwi with a short position of Timah Persero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Pertiwi and Timah Persero.
Diversification Opportunities for Duta Pertiwi and Timah Persero
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duta and Timah is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Duta Pertiwi Nusantara and Timah Persero Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timah Persero Tbk and Duta Pertiwi 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 Duta Pertiwi Nusantara are associated (or correlated) with Timah Persero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timah Persero Tbk has no effect on the direction of Duta Pertiwi i.e., Duta Pertiwi and Timah Persero go up and down completely randomly.
Pair Corralation between Duta Pertiwi and Timah Persero
Assuming the 90 days trading horizon Duta Pertiwi Nusantara is expected to generate 0.24 times more return on investment than Timah Persero. However, Duta Pertiwi Nusantara is 4.09 times less risky than Timah Persero. It trades about 0.0 of its potential returns per unit of risk. Timah Persero Tbk is currently generating about -0.18 per unit of risk. If you would invest 33,400 in Duta Pertiwi Nusantara on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Duta Pertiwi Nusantara or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duta Pertiwi Nusantara vs. Timah Persero Tbk
Performance |
| Timeline |
| Duta Pertiwi Nusantara |
| Timah Persero Tbk |
Duta Pertiwi and Timah Persero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Pertiwi and Timah Persero
The main advantage of trading using opposite Duta Pertiwi and Timah Persero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Pertiwi position performs unexpectedly, Timah Persero 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 Timah Persero will offset losses from the drop in Timah Persero's long position.| Duta Pertiwi vs. Kedaung Indah Can | Duta Pertiwi vs. Kabelindo Murni Tbk | Duta Pertiwi vs. Champion Pacific Indonesia | Duta Pertiwi vs. Bhuwanatala Indah Permai |
| Timah Persero vs. Vale Indonesia Tbk | Timah Persero vs. Aneka Tambang Persero | Timah Persero vs. Bukit Asam Tbk | Timah Persero vs. Perusahaan Gas Negara |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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