Correlation Between Dharma Satya and PT Jhonlin
Can any of the company-specific risk be diversified away by investing in both Dharma Satya and PT Jhonlin 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 PT Jhonlin 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 PT Jhonlin Agro, you can compare the effects of market volatilities on Dharma Satya and PT Jhonlin 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 PT Jhonlin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Satya and PT Jhonlin.
Diversification Opportunities for Dharma Satya and PT Jhonlin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dharma and JARR is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Satya Nusantara and PT Jhonlin Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jhonlin Agro 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 PT Jhonlin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jhonlin Agro has no effect on the direction of Dharma Satya i.e., Dharma Satya and PT Jhonlin go up and down completely randomly.
Pair Corralation between Dharma Satya and PT Jhonlin
Assuming the 90 days trading horizon Dharma Satya Nusantara is expected to generate 1.01 times more return on investment than PT Jhonlin. However, Dharma Satya is 1.01 times more volatile than PT Jhonlin Agro. It trades about -0.03 of its potential returns per unit of risk. PT Jhonlin Agro is currently generating about -0.24 per unit of risk. If you would invest 117,000 in Dharma Satya Nusantara on August 24, 2024 and sell it today you would lose (8,000) from holding Dharma Satya Nusantara or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dharma Satya Nusantara vs. PT Jhonlin Agro
Performance |
| Timeline |
| Dharma Satya Nusantara |
| PT Jhonlin Agro |
Dharma Satya and PT Jhonlin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Satya and PT Jhonlin
The main advantage of trading using opposite Dharma Satya and PT Jhonlin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Satya position performs unexpectedly, PT Jhonlin 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 Jhonlin will offset losses from the drop in PT Jhonlin's long position.| Dharma Satya vs. Salim Ivomas Pratama | Dharma Satya vs. Sawit Sumbermas Sarana | Dharma Satya vs. Austindo Nusantara Jaya | Dharma Satya vs. Eagle High Plantations |
| PT Jhonlin vs. Dharma Satya Nusantara | PT Jhonlin vs. Saratoga Investama Sedaya | PT Jhonlin vs. Surya Esa Perkasa | PT Jhonlin vs. Elang Mahkota Teknologi |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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