Correlation Between Dyandra Media and Leyand International
Can any of the company-specific risk be diversified away by investing in both Dyandra Media and Leyand International 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 Leyand International 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 Leyand International Tbk, you can compare the effects of market volatilities on Dyandra Media and Leyand International 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 Leyand International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dyandra Media and Leyand International.
Diversification Opportunities for Dyandra Media and Leyand International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Dyandra and Leyand is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Dyandra Media International and Leyand International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyand International 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 Leyand International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leyand International Tbk has no effect on the direction of Dyandra Media i.e., Dyandra Media and Leyand International go up and down completely randomly.
Pair Corralation between Dyandra Media and Leyand International
Assuming the 90 days trading horizon Dyandra Media International is expected to under-perform the Leyand International. But the stock apears to be less risky and, when comparing its historical volatility, Dyandra Media International is 2.27 times less risky than Leyand International. The stock trades about -0.1 of its potential returns per unit of risk. The Leyand International Tbk is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Leyand International Tbk on December 4, 2024 and sell it today you would earn a total of 0.00 from holding Leyand International Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dyandra Media International vs. Leyand International Tbk
Performance |
| Timeline |
| Dyandra Media Intern |
| Leyand International Tbk |
Dyandra Media and Leyand International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dyandra Media and Leyand International
The main advantage of trading using opposite Dyandra Media and Leyand International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyandra Media position performs unexpectedly, Leyand International 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 Leyand International will offset losses from the drop in Leyand International'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 |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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