Correlation Between Duta Pertiwi and Dian Swastatika
Can any of the company-specific risk be diversified away by investing in both Duta Pertiwi and Dian Swastatika 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 Duta Pertiwi and Dian Swastatika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duta Pertiwi Tbk and Dian Swastatika Sentosa, you can compare the effects of market volatilities on Duta Pertiwi and Dian Swastatika 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 Duta Pertiwi with a short position of Dian Swastatika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Pertiwi and Dian Swastatika.
Diversification Opportunities for Duta Pertiwi and Dian Swastatika
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duta and Dian is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Duta Pertiwi Tbk and Dian Swastatika Sentosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dian Swastatika Sentosa and Duta Pertiwi 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 Duta Pertiwi Tbk are associated (or correlated) with Dian Swastatika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dian Swastatika Sentosa has no effect on the direction of Duta Pertiwi i.e., Duta Pertiwi and Dian Swastatika go up and down completely randomly.
Pair Corralation between Duta Pertiwi and Dian Swastatika
Assuming the 90 days trading horizon Duta Pertiwi is expected to generate 956.85 times less return on investment than Dian Swastatika. But when comparing it to its historical volatility, Duta Pertiwi Tbk is 20.92 times less risky than Dian Swastatika. It trades about 0.0 of its potential returns per unit of risk. Dian Swastatika Sentosa is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 380,000 in Dian Swastatika Sentosa on November 4, 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 Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Duta Pertiwi Tbk vs. Dian Swastatika Sentosa
Performance |
| Timeline |
| Duta Pertiwi Tbk |
| Dian Swastatika Sentosa |
Duta Pertiwi and Dian Swastatika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Pertiwi and Dian Swastatika
The main advantage of trading using opposite Duta Pertiwi and Dian Swastatika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Pertiwi position performs unexpectedly, Dian Swastatika 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 Dian Swastatika will offset losses from the drop in Dian Swastatika's long position.| Duta Pertiwi vs. Duta Anggada Realty | Duta Pertiwi vs. Intiland Development Tbk | Duta Pertiwi vs. Bhuwanatala Indah Permai | Duta Pertiwi vs. Fortune Mate Indonesia |
| Dian Swastatika vs. Resource Alam Indonesia | Dian Swastatika vs. J Resources Asia | Dian Swastatika vs. TBS Energi Utama | Dian Swastatika vs. Rukun Raharja Tbk |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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