Correlation Between Imago Mulia and Damai Sejahtera
Can any of the company-specific risk be diversified away by investing in both Imago Mulia and Damai Sejahtera 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 Imago Mulia and Damai Sejahtera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imago Mulia Persada and Damai Sejahtera Abadi, you can compare the effects of market volatilities on Imago Mulia and Damai Sejahtera 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 Imago Mulia with a short position of Damai Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imago Mulia and Damai Sejahtera.
Diversification Opportunities for Imago Mulia and Damai Sejahtera
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imago and Damai is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Imago Mulia Persada and Damai Sejahtera Abadi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Damai Sejahtera Abadi and Imago Mulia 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 Imago Mulia Persada are associated (or correlated) with Damai Sejahtera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Damai Sejahtera Abadi has no effect on the direction of Imago Mulia i.e., Imago Mulia and Damai Sejahtera go up and down completely randomly.
Pair Corralation between Imago Mulia and Damai Sejahtera
Assuming the 90 days trading horizon Imago Mulia Persada is expected to generate 2.62 times more return on investment than Damai Sejahtera. However, Imago Mulia is 2.62 times more volatile than Damai Sejahtera Abadi. It trades about 0.07 of its potential returns per unit of risk. Damai Sejahtera Abadi is currently generating about 0.11 per unit of risk. If you would invest 4,894 in Imago Mulia Persada on September 1, 2024 and sell it today you would earn a total of 3,406 from holding Imago Mulia Persada or generate 69.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Imago Mulia Persada vs. Damai Sejahtera Abadi
Performance |
| Timeline |
| Imago Mulia Persada |
| Damai Sejahtera Abadi |
Imago Mulia and Damai Sejahtera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imago Mulia and Damai Sejahtera
The main advantage of trading using opposite Imago Mulia and Damai Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imago Mulia position performs unexpectedly, Damai Sejahtera 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 Damai Sejahtera will offset losses from the drop in Damai Sejahtera's long position.| Imago Mulia vs. Panca Anugrah Wisesa | Imago Mulia vs. PT Sunter Lakeside | Imago Mulia vs. Nusa Palapa Gemilang | Imago Mulia vs. Ulima Nitra PT |
| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama | Damai Sejahtera vs. Bank Net Indonesia |
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 Positions Ratings module to 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.
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