Correlation Between Dharma Polimetal and PT Data
Can any of the company-specific risk be diversified away by investing in both Dharma Polimetal and PT Data 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 PT Data 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 PT Data Sinergitama, you can compare the effects of market volatilities on Dharma Polimetal and PT Data 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 PT Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Polimetal and PT Data.
Diversification Opportunities for Dharma Polimetal and PT Data
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dharma and ELIT is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Polimetal Tbk and PT Data Sinergitama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Data Sinergitama 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 PT Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Data Sinergitama has no effect on the direction of Dharma Polimetal i.e., Dharma Polimetal and PT Data go up and down completely randomly.
Pair Corralation between Dharma Polimetal and PT Data
Assuming the 90 days trading horizon Dharma Polimetal is expected to generate 3.43 times less return on investment than PT Data. But when comparing it to its historical volatility, Dharma Polimetal Tbk is 1.95 times less risky than PT Data. It trades about 0.11 of its potential returns per unit of risk. PT Data Sinergitama is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,500 in PT Data Sinergitama on October 26, 2024 and sell it today you would earn a total of 1,100 from holding PT Data Sinergitama or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dharma Polimetal Tbk vs. PT Data Sinergitama
Performance |
| Timeline |
| Dharma Polimetal Tbk |
| PT Data Sinergitama |
Dharma Polimetal and PT Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Polimetal and PT Data
The main advantage of trading using opposite Dharma Polimetal and PT Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Polimetal position performs unexpectedly, PT Data 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 PT Data will offset losses from the drop in PT Data'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 |
| PT Data vs. Victoria Insurance Tbk | PT Data vs. Lippo General Insurance | PT Data vs. PT UBC Medical | PT Data vs. Dharma Polimetal Tbk |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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