Correlation Between Dyandra Media and Global Mediacom
Can any of the company-specific risk be diversified away by investing in both Dyandra Media and Global Mediacom 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 Dyandra Media and Global Mediacom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dyandra Media International and Global Mediacom Tbk, you can compare the effects of market volatilities on Dyandra Media and Global Mediacom 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 Dyandra Media with a short position of Global Mediacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dyandra Media and Global Mediacom.
Diversification Opportunities for Dyandra Media and Global Mediacom
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dyandra and Global is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dyandra Media International and Global Mediacom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mediacom Tbk and Dyandra Media 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 Dyandra Media International are associated (or correlated) with Global Mediacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mediacom Tbk has no effect on the direction of Dyandra Media i.e., Dyandra Media and Global Mediacom go up and down completely randomly.
Pair Corralation between Dyandra Media and Global Mediacom
Assuming the 90 days trading horizon Dyandra Media International is expected to generate 0.98 times more return on investment than Global Mediacom. However, Dyandra Media International is 1.03 times less risky than Global Mediacom. It trades about -0.18 of its potential returns per unit of risk. Global Mediacom Tbk is currently generating about -0.25 per unit of risk. If you would invest 10,200 in Dyandra Media International on September 2, 2024 and sell it today you would lose (600.00) from holding Dyandra Media International or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dyandra Media International vs. Global Mediacom Tbk
Performance |
| Timeline |
| Dyandra Media Intern |
| Global Mediacom Tbk |
Dyandra Media and Global Mediacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dyandra Media and Global Mediacom
The main advantage of trading using opposite Dyandra Media and Global Mediacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyandra Media position performs unexpectedly, Global Mediacom 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 Global Mediacom will offset losses from the drop in Global Mediacom's long position.| Dyandra Media vs. Electronic City Indonesia | Dyandra Media vs. Steel Pipe Industry | Dyandra Media vs. Visi Media Asia | Dyandra Media vs. Bekasi Fajar Industrial |
| Global Mediacom vs. Indosat Tbk | Global Mediacom vs. XL Axiata Tbk | Global Mediacom vs. Energi Mega Persada | Global Mediacom vs. Bakrie Brothers 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |