Correlation Between Ekadharma International and Duta Pertiwi
Can any of the company-specific risk be diversified away by investing in both Ekadharma International and Duta Pertiwi 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 Ekadharma International and Duta Pertiwi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekadharma International Tbk and Duta Pertiwi Nusantara, you can compare the effects of market volatilities on Ekadharma International and Duta Pertiwi 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 Ekadharma International with a short position of Duta Pertiwi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekadharma International and Duta Pertiwi.
Diversification Opportunities for Ekadharma International and Duta Pertiwi
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ekadharma and Duta is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ekadharma International Tbk and Duta Pertiwi Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duta Pertiwi Nusantara and Ekadharma International 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 Ekadharma International Tbk are associated (or correlated) with Duta Pertiwi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duta Pertiwi Nusantara has no effect on the direction of Ekadharma International i.e., Ekadharma International and Duta Pertiwi go up and down completely randomly.
Pair Corralation between Ekadharma International and Duta Pertiwi
Assuming the 90 days trading horizon Ekadharma International Tbk is expected to under-perform the Duta Pertiwi. In addition to that, Ekadharma International is 1.06 times more volatile than Duta Pertiwi Nusantara. It trades about -0.12 of its total potential returns per unit of risk. Duta Pertiwi Nusantara is currently generating about -0.04 per unit of volatility. If you would invest 34,600 in Duta Pertiwi Nusantara on August 29, 2024 and sell it today you would lose (600.00) from holding Duta Pertiwi Nusantara or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Ekadharma International Tbk vs. Duta Pertiwi Nusantara
Performance |
| Timeline |
| Ekadharma International |
| Duta Pertiwi Nusantara |
Ekadharma International and Duta Pertiwi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekadharma International and Duta Pertiwi
The main advantage of trading using opposite Ekadharma International and Duta Pertiwi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekadharma International position performs unexpectedly, Duta Pertiwi 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 Duta Pertiwi will offset losses from the drop in Duta Pertiwi's long position.| Ekadharma International vs. Ultra Jaya Milk | Ekadharma International vs. Colorpak Indonesia Tbk | Ekadharma International vs. Champion Pacific Indonesia | Ekadharma International vs. Duta Pertiwi Nusantara |
| Duta Pertiwi vs. Barito Pacific Tbk | Duta Pertiwi vs. Pabrik Kertas Tjiwi | Duta Pertiwi vs. Charoen Pokphand Indonesia | Duta Pertiwi vs. Indocement Tunggal Prakarsa |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Positions Ratings 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 | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |