Correlation Between Dharma Polimetal and PT UBC
Can any of the company-specific risk be diversified away by investing in both Dharma Polimetal and PT UBC 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 UBC 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 UBC Medical, you can compare the effects of market volatilities on Dharma Polimetal and PT UBC 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 UBC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Polimetal and PT UBC.
Diversification Opportunities for Dharma Polimetal and PT UBC
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dharma and LABS is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Polimetal Tbk and PT UBC Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT UBC Medical 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 UBC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT UBC Medical has no effect on the direction of Dharma Polimetal i.e., Dharma Polimetal and PT UBC go up and down completely randomly.
Pair Corralation between Dharma Polimetal and PT UBC
Assuming the 90 days trading horizon Dharma Polimetal Tbk is expected to under-perform the PT UBC. But the stock apears to be less risky and, when comparing its historical volatility, Dharma Polimetal Tbk is 1.9 times less risky than PT UBC. The stock trades about -0.04 of its potential returns per unit of risk. The PT UBC Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 13,700 in PT UBC Medical on November 5, 2024 and sell it today you would lose (1,000.00) from holding PT UBC Medical or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 60.87% |
| Values | Daily Returns |
Dharma Polimetal Tbk vs. PT UBC Medical
Performance |
| Timeline |
| Dharma Polimetal Tbk |
| PT UBC Medical |
Dharma Polimetal and PT UBC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Polimetal and PT UBC
The main advantage of trading using opposite Dharma Polimetal and PT UBC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Polimetal position performs unexpectedly, PT UBC 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 UBC will offset losses from the drop in PT UBC'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 UBC vs. Indo Acidatama Tbk | PT UBC vs. PT Bank Bisnis | PT UBC vs. Pertamina Geothermal Energy | PT UBC vs. Smartfren Telecom 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |