Correlation Between Dian Swastatika and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Dian Swastatika and Dow Jones 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 Dian Swastatika and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dian Swastatika Sentosa and Dow Jones Industrial, you can compare the effects of market volatilities on Dian Swastatika and Dow Jones 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 Dian Swastatika with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dian Swastatika and Dow Jones.
Diversification Opportunities for Dian Swastatika and Dow Jones
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dian and Dow is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Dian Swastatika Sentosa and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Dian Swastatika 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 Dian Swastatika Sentosa are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Dian Swastatika i.e., Dian Swastatika and Dow Jones go up and down completely randomly.
Pair Corralation between Dian Swastatika and Dow Jones
Assuming the 90 days trading horizon Dian Swastatika Sentosa is expected to generate 65.54 times more return on investment than Dow Jones. However, Dian Swastatika is 65.54 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 380,000 in Dian Swastatika Sentosa on November 5, 2024 and sell it today you would earn a total of 4,107,500 from holding Dian Swastatika Sentosa or generate 1080.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.55% |
| Values | Daily Returns |
Dian Swastatika Sentosa vs. Dow Jones Industrial
Performance |
| Timeline |
Dian Swastatika and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Dian Swastatika Sentosa
Pair trading matchups for Dian Swastatika
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Dian Swastatika and Dow Jones
The main advantage of trading using opposite Dian Swastatika and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dian Swastatika position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Dian Swastatika vs. Bayan Resources Tbk | Dian Swastatika vs. Indoritel Makmur Internasional | Dian Swastatika vs. Duta Pertiwi Tbk | Dian Swastatika vs. Enseval Putra Megatrading |
| Dow Jones vs. Fernhill Beverage | Dow Jones vs. Fomento Economico Mexicano | Dow Jones vs. Loud Beverage Group | Dow Jones vs. Diageo PLC ADR |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |