Correlation Between Dharma Polimetal and Mnc Kapital
Can any of the company-specific risk be diversified away by investing in both Dharma Polimetal and Mnc Kapital 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 Mnc Kapital 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 Mnc Kapital Indonesia, you can compare the effects of market volatilities on Dharma Polimetal and Mnc Kapital 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 Mnc Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Polimetal and Mnc Kapital.
Diversification Opportunities for Dharma Polimetal and Mnc Kapital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dharma and Mnc is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Polimetal Tbk and Mnc Kapital Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mnc Kapital Indonesia 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 Mnc Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mnc Kapital Indonesia has no effect on the direction of Dharma Polimetal i.e., Dharma Polimetal and Mnc Kapital go up and down completely randomly.
Pair Corralation between Dharma Polimetal and Mnc Kapital
Assuming the 90 days trading horizon Dharma Polimetal Tbk is expected to generate 0.32 times more return on investment than Mnc Kapital. However, Dharma Polimetal Tbk is 3.1 times less risky than Mnc Kapital. It trades about -0.26 of its potential returns per unit of risk. Mnc Kapital Indonesia is currently generating about -0.12 per unit of risk. If you would invest 111,000 in Dharma Polimetal Tbk on August 29, 2024 and sell it today you would lose (10,000) from holding Dharma Polimetal Tbk or give up 9.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dharma Polimetal Tbk vs. Mnc Kapital Indonesia
Performance |
| Timeline |
| Dharma Polimetal Tbk |
| Mnc Kapital Indonesia |
Dharma Polimetal and Mnc Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Polimetal and Mnc Kapital
The main advantage of trading using opposite Dharma Polimetal and Mnc Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Polimetal position performs unexpectedly, Mnc Kapital 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 Mnc Kapital will offset losses from the drop in Mnc Kapital'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 |
| Mnc Kapital vs. Kedawung Setia Industrial | Mnc Kapital vs. Nanotech Indonesia Global | Mnc Kapital vs. Dharma Polimetal Tbk | Mnc Kapital vs. Bank Ocbc Nisp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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