Correlation Between Hero Supermarket and Dyandra Media
Can any of the company-specific risk be diversified away by investing in both Hero Supermarket and Dyandra Media 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 Hero Supermarket and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hero Supermarket Tbk and Dyandra Media International, you can compare the effects of market volatilities on Hero Supermarket and Dyandra Media 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 Hero Supermarket with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hero Supermarket and Dyandra Media.
Diversification Opportunities for Hero Supermarket and Dyandra Media
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hero and Dyandra is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hero Supermarket Tbk and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern and Hero Supermarket 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 Hero Supermarket Tbk are associated (or correlated) with Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of Hero Supermarket i.e., Hero Supermarket and Dyandra Media go up and down completely randomly.
Pair Corralation between Hero Supermarket and Dyandra Media
Assuming the 90 days trading horizon Hero Supermarket Tbk is expected to under-perform the Dyandra Media. In addition to that, Hero Supermarket is 1.23 times more volatile than Dyandra Media International. It trades about -0.3 of its total potential returns per unit of risk. Dyandra Media International is currently generating about -0.17 per unit of volatility. If you would invest 10,200 in Dyandra Media International on August 31, 2024 and sell it today you would lose (600.00) from holding Dyandra Media International or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hero Supermarket Tbk vs. Dyandra Media International
Performance |
| Timeline |
| Hero Supermarket Tbk |
| Dyandra Media Intern |
Hero Supermarket and Dyandra Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hero Supermarket and Dyandra Media
The main advantage of trading using opposite Hero Supermarket and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hero Supermarket position performs unexpectedly, Dyandra Media 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 Dyandra Media will offset losses from the drop in Dyandra Media's long position.| Hero Supermarket vs. Bank BRISyariah Tbk | Hero Supermarket vs. Mitra Pinasthika Mustika | Hero Supermarket vs. Jakarta Int Hotels | Hero Supermarket vs. Indosterling Technomedia Tbk |
| Dyandra Media vs. Matahari Department Store | Dyandra Media vs. Multi Medika Internasional | Dyandra Media vs. Visi Media Asia | Dyandra Media vs. Bayan Resources Tbk |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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