Correlation Between Dian Swastatika and Inti Bangun
Can any of the company-specific risk be diversified away by investing in both Dian Swastatika and Inti Bangun 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 Inti Bangun 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 Inti Bangun Sejahtera, you can compare the effects of market volatilities on Dian Swastatika and Inti Bangun 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 Inti Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dian Swastatika and Inti Bangun.
Diversification Opportunities for Dian Swastatika and Inti Bangun
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dian and Inti is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dian Swastatika Sentosa and Inti Bangun Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inti Bangun Sejahtera 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 Inti Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inti Bangun Sejahtera has no effect on the direction of Dian Swastatika i.e., Dian Swastatika and Inti Bangun go up and down completely randomly.
Pair Corralation between Dian Swastatika and Inti Bangun
Assuming the 90 days trading horizon Dian Swastatika Sentosa is expected to generate 1.35 times more return on investment than Inti Bangun. However, Dian Swastatika is 1.35 times more volatile than Inti Bangun Sejahtera. It trades about 0.13 of its potential returns per unit of risk. Inti Bangun Sejahtera is currently generating about 0.11 per unit of risk. If you would invest 3,665,000 in Dian Swastatika Sentosa on October 25, 2024 and sell it today you would earn a total of 530,000 from holding Dian Swastatika Sentosa or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Dian Swastatika Sentosa vs. Inti Bangun Sejahtera
Performance |
| Timeline |
| Dian Swastatika Sentosa |
| Inti Bangun Sejahtera |
Dian Swastatika and Inti Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dian Swastatika and Inti Bangun
The main advantage of trading using opposite Dian Swastatika and Inti Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dian Swastatika position performs unexpectedly, Inti Bangun 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 Inti Bangun will offset losses from the drop in Inti Bangun's 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 |
| Inti Bangun vs. Bali Towerindo Sentra | Inti Bangun vs. Dian Swastatika Sentosa | Inti Bangun vs. Humpuss Intermoda Transportasi | Inti Bangun vs. Solusi Tunas Pratama |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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