Correlation Between Dyandra Media and Electronic City
Can any of the company-specific risk be diversified away by investing in both Dyandra Media and Electronic City 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 Electronic City 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 Electronic City Indonesia, you can compare the effects of market volatilities on Dyandra Media and Electronic City 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 Electronic City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dyandra Media and Electronic City.
Diversification Opportunities for Dyandra Media and Electronic City
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dyandra and Electronic is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Dyandra Media International and Electronic City Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic City Indonesia 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 Electronic City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic City Indonesia has no effect on the direction of Dyandra Media i.e., Dyandra Media and Electronic City go up and down completely randomly.
Pair Corralation between Dyandra Media and Electronic City
Assuming the 90 days trading horizon Dyandra Media is expected to generate 1.51 times less return on investment than Electronic City. But when comparing it to its historical volatility, Dyandra Media International is 5.99 times less risky than Electronic City. It trades about 0.17 of its potential returns per unit of risk. Electronic City Indonesia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 19,700 in Electronic City Indonesia on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Electronic City Indonesia or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dyandra Media International vs. Electronic City Indonesia
Performance |
| Timeline |
| Dyandra Media Intern |
| Electronic City Indonesia |
Dyandra Media and Electronic City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dyandra Media and Electronic City
The main advantage of trading using opposite Dyandra Media and Electronic City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyandra Media position performs unexpectedly, Electronic City 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 Electronic City will offset losses from the drop in Electronic City'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 |
| Electronic City vs. Catur Sentosa Adiprana | Electronic City vs. Fast Food Indonesia | Electronic City vs. Hero Supermarket Tbk | Electronic City vs. Graha Layar Prima |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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