Correlation Between Duta Pertiwi and Indonesia Prima
Can any of the company-specific risk be diversified away by investing in both Duta Pertiwi and Indonesia 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 Duta Pertiwi and Indonesia Prima 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 Indonesia Prima Property, you can compare the effects of market volatilities on Duta Pertiwi and Indonesia 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 Duta Pertiwi with a short position of Indonesia Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Pertiwi and Indonesia Prima.
Diversification Opportunities for Duta Pertiwi and Indonesia Prima
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duta and Indonesia is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Duta Pertiwi Tbk and Indonesia Prima Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indonesia Prima Property 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 Indonesia Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indonesia Prima Property has no effect on the direction of Duta Pertiwi i.e., Duta Pertiwi and Indonesia Prima go up and down completely randomly.
Pair Corralation between Duta Pertiwi and Indonesia Prima
Assuming the 90 days trading horizon Duta Pertiwi Tbk is expected to generate 0.68 times more return on investment than Indonesia Prima. However, Duta Pertiwi Tbk is 1.48 times less risky than Indonesia Prima. It trades about 0.0 of its potential returns per unit of risk. Indonesia Prima Property is currently generating about -0.02 per unit of risk. If you would invest 406,016 in Duta Pertiwi Tbk on November 5, 2024 and sell it today you would lose (40,016) from holding Duta Pertiwi Tbk or give up 9.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Duta Pertiwi Tbk vs. Indonesia Prima Property
Performance |
| Timeline |
| Duta Pertiwi Tbk |
| Indonesia Prima Property |
Duta Pertiwi and Indonesia Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Pertiwi and Indonesia Prima
The main advantage of trading using opposite Duta Pertiwi and Indonesia Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Pertiwi position performs unexpectedly, Indonesia 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 Indonesia Prima will offset losses from the drop in Indonesia Prima'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 |
| Indonesia Prima vs. Pikko Land Development | Indonesia Prima vs. Suryamas Dutamakmur Tbk | Indonesia Prima vs. Ristia Bintang Mahkotasejati | Indonesia Prima vs. Pudjiadi Prestige 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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