Correlation Between Enseval Putra and Duta Pertiwi
Can any of the company-specific risk be diversified away by investing in both Enseval Putra 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 Enseval Putra and Duta Pertiwi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enseval Putra Megatrading and Duta Pertiwi Nusantara, you can compare the effects of market volatilities on Enseval Putra 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 Enseval Putra with a short position of Duta Pertiwi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enseval Putra and Duta Pertiwi.
Diversification Opportunities for Enseval Putra and Duta Pertiwi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enseval and Duta is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Enseval Putra Megatrading 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 Enseval Putra 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 Enseval Putra Megatrading 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 Enseval Putra i.e., Enseval Putra and Duta Pertiwi go up and down completely randomly.
Pair Corralation between Enseval Putra and Duta Pertiwi
Assuming the 90 days trading horizon Enseval Putra Megatrading is expected to generate 0.56 times more return on investment than Duta Pertiwi. However, Enseval Putra Megatrading is 1.8 times less risky than Duta Pertiwi. It trades about -0.01 of its potential returns per unit of risk. Duta Pertiwi Nusantara is currently generating about -0.04 per unit of risk. If you would invest 237,054 in Enseval Putra Megatrading on November 27, 2024 and sell it today you would lose (19,054) from holding Enseval Putra Megatrading or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.57% |
| Values | Daily Returns |
Enseval Putra Megatrading vs. Duta Pertiwi Nusantara
Performance |
| Timeline |
| Enseval Putra Megatrading |
| Duta Pertiwi Nusantara |
Enseval Putra and Duta Pertiwi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enseval Putra and Duta Pertiwi
The main advantage of trading using opposite Enseval Putra and Duta Pertiwi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enseval Putra 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.| Enseval Putra vs. Astra Graphia Tbk | Enseval Putra vs. Hexindo Adiperkasa Tbk | Enseval Putra vs. Lautan Luas Tbk | Enseval Putra vs. Citra Marga Nusaphala |
| Duta Pertiwi vs. Intanwijaya Internasional Tbk | Duta Pertiwi vs. Betonjaya Manunggal Tbk | Duta Pertiwi vs. Asiaplast Industries Tbk | Duta Pertiwi vs. Argha Karya 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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