Correlation Between DMS Propertindo and Diamond Citra
Can any of the company-specific risk be diversified away by investing in both DMS Propertindo and Diamond Citra 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 DMS Propertindo and Diamond Citra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DMS Propertindo Tbk and Diamond Citra Propertindo, you can compare the effects of market volatilities on DMS Propertindo and Diamond Citra 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 DMS Propertindo with a short position of Diamond Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of DMS Propertindo and Diamond Citra.
Diversification Opportunities for DMS Propertindo and Diamond Citra
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DMS and Diamond is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DMS Propertindo Tbk and Diamond Citra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Citra Propertindo and DMS Propertindo 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 DMS Propertindo Tbk are associated (or correlated) with Diamond Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Citra Propertindo has no effect on the direction of DMS Propertindo i.e., DMS Propertindo and Diamond Citra go up and down completely randomly.
Pair Corralation between DMS Propertindo and Diamond Citra
Assuming the 90 days trading horizon DMS Propertindo Tbk is expected to under-perform the Diamond Citra. In addition to that, DMS Propertindo is 2.02 times more volatile than Diamond Citra Propertindo. It trades about -0.06 of its total potential returns per unit of risk. Diamond Citra Propertindo is currently generating about 0.15 per unit of volatility. If you would invest 800.00 in Diamond Citra Propertindo on October 23, 2024 and sell it today you would earn a total of 100.00 from holding Diamond Citra Propertindo or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DMS Propertindo Tbk vs. Diamond Citra Propertindo
Performance |
| Timeline |
| DMS Propertindo Tbk |
| Diamond Citra Propertindo |
DMS Propertindo and Diamond Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DMS Propertindo and Diamond Citra
The main advantage of trading using opposite DMS Propertindo and Diamond Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DMS Propertindo position performs unexpectedly, Diamond Citra 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 Diamond Citra will offset losses from the drop in Diamond Citra's long position.| DMS Propertindo vs. Bima Sakti Pertiwi | DMS Propertindo vs. Karya Bersama Anugerah | DMS Propertindo vs. Pollux Properti Indonesia | DMS Propertindo vs. Surya Permata Andalan |
| Diamond Citra vs. Triniti Dinamik PT | Diamond Citra vs. Grand House Mulia | Diamond Citra vs. DMS Propertindo Tbk | Diamond Citra vs. Natura City Developments |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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