Correlation Between Dharma Satya and Hero Supermarket
Can any of the company-specific risk be diversified away by investing in both Dharma Satya and Hero Supermarket 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 Satya and Hero Supermarket into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dharma Satya Nusantara and Hero Supermarket Tbk, you can compare the effects of market volatilities on Dharma Satya and Hero Supermarket 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 Satya with a short position of Hero Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Satya and Hero Supermarket.
Diversification Opportunities for Dharma Satya and Hero Supermarket
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dharma and Hero is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Satya Nusantara and Hero Supermarket Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hero Supermarket Tbk and Dharma Satya 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 Satya Nusantara are associated (or correlated) with Hero Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hero Supermarket Tbk has no effect on the direction of Dharma Satya i.e., Dharma Satya and Hero Supermarket go up and down completely randomly.
Pair Corralation between Dharma Satya and Hero Supermarket
Assuming the 90 days trading horizon Dharma Satya Nusantara is expected to generate 1.07 times more return on investment than Hero Supermarket. However, Dharma Satya is 1.07 times more volatile than Hero Supermarket Tbk. It trades about 0.08 of its potential returns per unit of risk. Hero Supermarket Tbk is currently generating about -0.06 per unit of risk. If you would invest 55,336 in Dharma Satya Nusantara on September 12, 2024 and sell it today you would earn a total of 63,164 from holding Dharma Satya Nusantara or generate 114.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Dharma Satya Nusantara vs. Hero Supermarket Tbk
Performance |
| Timeline |
| Dharma Satya Nusantara |
| Hero Supermarket Tbk |
Dharma Satya and Hero Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Satya and Hero Supermarket
The main advantage of trading using opposite Dharma Satya and Hero Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Satya position performs unexpectedly, Hero Supermarket 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 Hero Supermarket will offset losses from the drop in Hero Supermarket's long position.| Dharma Satya vs. Austindo Nusantara Jaya | Dharma Satya vs. Garudafood Putra Putri | Dharma Satya vs. Provident Agro Tbk | Dharma Satya vs. Sawit Sumbermas Sarana |
| Hero Supermarket vs. Austindo Nusantara Jaya | Hero Supermarket vs. Garudafood Putra Putri | Hero Supermarket vs. Provident Agro Tbk | Hero Supermarket vs. Dharma Satya Nusantara |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |