Correlation Between DMS Propertindo and Repower Asia
Can any of the company-specific risk be diversified away by investing in both DMS Propertindo and Repower Asia 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 Repower Asia 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 Repower Asia Indonesia, you can compare the effects of market volatilities on DMS Propertindo and Repower Asia 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 Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of DMS Propertindo and Repower Asia.
Diversification Opportunities for DMS Propertindo and Repower Asia
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DMS and Repower is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding DMS Propertindo Tbk and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia 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 Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of DMS Propertindo i.e., DMS Propertindo and Repower Asia go up and down completely randomly.
Pair Corralation between DMS Propertindo and Repower Asia
Assuming the 90 days trading horizon DMS Propertindo Tbk is expected to under-perform the Repower Asia. But the stock apears to be less risky and, when comparing its historical volatility, DMS Propertindo Tbk is 1.62 times less risky than Repower Asia. The stock trades about -0.07 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,000 in Repower Asia Indonesia on August 28, 2024 and sell it today you would lose (4,200) from holding Repower Asia Indonesia or give up 84.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
DMS Propertindo Tbk vs. Repower Asia Indonesia
Performance |
| Timeline |
| DMS Propertindo Tbk |
| Repower Asia Indonesia |
DMS Propertindo and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DMS Propertindo and Repower Asia
The main advantage of trading using opposite DMS Propertindo and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DMS Propertindo position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia's long position.| DMS Propertindo vs. Karya Bersama Anugerah | DMS Propertindo vs. Andalan Sakti Primaindo | DMS Propertindo vs. Perintis Triniti Properti | DMS Propertindo vs. Repower Asia Indonesia |
| Repower Asia vs. Bumi Benowo Sukses | Repower Asia vs. Andalan Sakti Primaindo | Repower Asia vs. Bhakti Multi Artha | Repower Asia vs. Greenwood Sejahtera 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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