Correlation Between Panca Anugrah and Damai Sejahtera
Can any of the company-specific risk be diversified away by investing in both Panca Anugrah 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 Panca Anugrah and Damai Sejahtera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panca Anugrah Wisesa and Damai Sejahtera Abadi, you can compare the effects of market volatilities on Panca Anugrah 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 Panca Anugrah with a short position of Damai Sejahtera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panca Anugrah and Damai Sejahtera.
Diversification Opportunities for Panca Anugrah and Damai Sejahtera
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panca and Damai is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Panca Anugrah Wisesa 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 Panca Anugrah 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 Panca Anugrah Wisesa 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 Panca Anugrah i.e., Panca Anugrah and Damai Sejahtera go up and down completely randomly.
Pair Corralation between Panca Anugrah and Damai Sejahtera
Assuming the 90 days trading horizon Panca Anugrah Wisesa is expected to generate 0.57 times more return on investment than Damai Sejahtera. However, Panca Anugrah Wisesa is 1.75 times less risky than Damai Sejahtera. It trades about 0.27 of its potential returns per unit of risk. Damai Sejahtera Abadi is currently generating about 0.02 per unit of risk. If you would invest 8,100 in Panca Anugrah Wisesa on November 27, 2024 and sell it today you would earn a total of 1,600 from holding Panca Anugrah Wisesa or generate 19.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panca Anugrah Wisesa vs. Damai Sejahtera Abadi
Performance |
| Timeline |
| Panca Anugrah Wisesa |
| Damai Sejahtera Abadi |
Panca Anugrah and Damai Sejahtera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panca Anugrah and Damai Sejahtera
The main advantage of trading using opposite Panca Anugrah and Damai Sejahtera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panca Anugrah 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.| Panca Anugrah vs. Cisarua Mountain Dairy | Panca Anugrah vs. Triputra Agro Persada | Panca Anugrah vs. Wahana Inti MakmurTbk | Panca Anugrah vs. PT Hasnur Internasional |
| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Widodo Makmur Unggas | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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