Correlation Between Dyandra Media and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Dyandra Media and Trimegah Karya 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 Trimegah Karya 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 Trimegah Karya Pratama, you can compare the effects of market volatilities on Dyandra Media and Trimegah Karya 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 Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dyandra Media and Trimegah Karya.
Diversification Opportunities for Dyandra Media and Trimegah Karya
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dyandra and Trimegah is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dyandra Media International and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama 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 Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Dyandra Media i.e., Dyandra Media and Trimegah Karya go up and down completely randomly.
Pair Corralation between Dyandra Media and Trimegah Karya
Assuming the 90 days trading horizon Dyandra Media International is expected to under-perform the Trimegah Karya. But the stock apears to be less risky and, when comparing its historical volatility, Dyandra Media International is 1.3 times less risky than Trimegah Karya. The stock trades about -0.09 of its potential returns per unit of risk. The Trimegah Karya Pratama is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,500 in Trimegah Karya Pratama on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Trimegah Karya Pratama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dyandra Media International vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Dyandra Media Intern |
| Trimegah Karya Pratama |
Dyandra Media and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dyandra Media and Trimegah Karya
The main advantage of trading using opposite Dyandra Media and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyandra Media position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya's long position.| Dyandra Media vs. Buana Listya Tama | Dyandra Media vs. Mitrabahtera Segara Sejati | Dyandra Media vs. Trans Power Marine |
| Trimegah Karya vs. Dyandra Media International | Trimegah Karya vs. Global Mediacom Tbk | Trimegah Karya vs. Sentra Food Indonesia | Trimegah Karya vs. Visi Media Asia |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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