Correlation Between Dharma Polimetal and Maming Enam
Can any of the company-specific risk be diversified away by investing in both Dharma Polimetal and Maming Enam 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 Dharma Polimetal and Maming Enam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dharma Polimetal Tbk and Maming Enam Sembilan, you can compare the effects of market volatilities on Dharma Polimetal and Maming Enam 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 Dharma Polimetal with a short position of Maming Enam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Polimetal and Maming Enam.
Diversification Opportunities for Dharma Polimetal and Maming Enam
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dharma and Maming is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Polimetal Tbk and Maming Enam Sembilan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maming Enam Sembilan and Dharma Polimetal 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 Dharma Polimetal Tbk are associated (or correlated) with Maming Enam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maming Enam Sembilan has no effect on the direction of Dharma Polimetal i.e., Dharma Polimetal and Maming Enam go up and down completely randomly.
Pair Corralation between Dharma Polimetal and Maming Enam
Assuming the 90 days trading horizon Dharma Polimetal Tbk is expected to generate 0.34 times more return on investment than Maming Enam. However, Dharma Polimetal Tbk is 2.97 times less risky than Maming Enam. It trades about -0.06 of its potential returns per unit of risk. Maming Enam Sembilan is currently generating about -0.27 per unit of risk. If you would invest 101,500 in Dharma Polimetal Tbk on September 13, 2024 and sell it today you would lose (2,000) from holding Dharma Polimetal Tbk or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dharma Polimetal Tbk vs. Maming Enam Sembilan
Performance |
| Timeline |
| Dharma Polimetal Tbk |
| Maming Enam Sembilan |
Dharma Polimetal and Maming Enam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Polimetal and Maming Enam
The main advantage of trading using opposite Dharma Polimetal and Maming Enam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Polimetal position performs unexpectedly, Maming Enam 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 Maming Enam will offset losses from the drop in Maming Enam's long position.| Dharma Polimetal vs. Triputra Agro Persada | Dharma Polimetal vs. Autopedia Sukses Lestari | Dharma Polimetal vs. Cisarua Mountain Dairy | Dharma Polimetal vs. Surya Esa Perkasa |
| Maming Enam vs. Paninvest Tbk | Maming Enam vs. Maskapai Reasuransi Indonesia | Maming Enam vs. Panin Sekuritas Tbk | Maming Enam vs. Wahana Ottomitra Multiartha |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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