Correlation Between Dharma Satya and Saratoga Investama
Can any of the company-specific risk be diversified away by investing in both Dharma Satya and Saratoga Investama 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 Saratoga Investama 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 Saratoga Investama Sedaya, you can compare the effects of market volatilities on Dharma Satya and Saratoga Investama 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 Saratoga Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Satya and Saratoga Investama.
Diversification Opportunities for Dharma Satya and Saratoga Investama
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dharma and Saratoga is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Satya Nusantara and Saratoga Investama Sedaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investama Sedaya 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 Saratoga Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investama Sedaya has no effect on the direction of Dharma Satya i.e., Dharma Satya and Saratoga Investama go up and down completely randomly.
Pair Corralation between Dharma Satya and Saratoga Investama
Assuming the 90 days trading horizon Dharma Satya Nusantara is expected to generate 0.94 times more return on investment than Saratoga Investama. However, Dharma Satya Nusantara is 1.07 times less risky than Saratoga Investama. It trades about 0.13 of its potential returns per unit of risk. Saratoga Investama Sedaya is currently generating about 0.06 per unit of risk. If you would invest 52,697 in Dharma Satya Nusantara on August 24, 2024 and sell it today you would earn a total of 63,803 from holding Dharma Satya Nusantara or generate 121.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dharma Satya Nusantara vs. Saratoga Investama Sedaya
Performance |
| Timeline |
| Dharma Satya Nusantara |
| Saratoga Investama Sedaya |
Dharma Satya and Saratoga Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Satya and Saratoga Investama
The main advantage of trading using opposite Dharma Satya and Saratoga Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Satya position performs unexpectedly, Saratoga Investama 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 Saratoga Investama will offset losses from the drop in Saratoga Investama'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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