Correlation Between Dharma Satya and Teladan Prima
Can any of the company-specific risk be diversified away by investing in both Dharma Satya and Teladan Prima 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 Teladan Prima 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 Teladan Prima Agro, you can compare the effects of market volatilities on Dharma Satya and Teladan Prima 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 Teladan Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Satya and Teladan Prima.
Diversification Opportunities for Dharma Satya and Teladan Prima
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dharma and Teladan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Satya Nusantara and Teladan Prima Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladan Prima 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 Teladan Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladan Prima Agro has no effect on the direction of Dharma Satya i.e., Dharma Satya and Teladan Prima go up and down completely randomly.
Pair Corralation between Dharma Satya and Teladan Prima
Assuming the 90 days trading horizon Dharma Satya Nusantara is expected to under-perform the Teladan Prima. In addition to that, Dharma Satya is 5.82 times more volatile than Teladan Prima Agro. It trades about -0.1 of its total potential returns per unit of risk. Teladan Prima Agro is currently generating about -0.09 per unit of volatility. If you would invest 54,000 in Teladan Prima Agro on September 12, 2024 and sell it today you would lose (1,000.00) from holding Teladan Prima Agro or give up 1.85% 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. Teladan Prima Agro
Performance |
| Timeline |
| Dharma Satya Nusantara |
| Teladan Prima Agro |
Dharma Satya and Teladan Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dharma Satya and Teladan Prima
The main advantage of trading using opposite Dharma Satya and Teladan Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dharma Satya position performs unexpectedly, Teladan Prima 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 Teladan Prima will offset losses from the drop in Teladan Prima'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 |
| Teladan Prima vs. Sumber Tani Agung | Teladan Prima vs. Wir Asia Tbk | Teladan Prima vs. Triputra Agro Persada | Teladan Prima vs. Net Visi Media |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |