Correlation Between Menthobi Karyatama and Dharma Satya
Can any of the company-specific risk be diversified away by investing in both Menthobi Karyatama and Dharma Satya 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 Menthobi Karyatama and Dharma Satya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menthobi Karyatama Raya and Dharma Satya Nusantara, you can compare the effects of market volatilities on Menthobi Karyatama and Dharma Satya 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 Menthobi Karyatama with a short position of Dharma Satya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menthobi Karyatama and Dharma Satya.
Diversification Opportunities for Menthobi Karyatama and Dharma Satya
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Menthobi and Dharma is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Menthobi Karyatama Raya and Dharma Satya Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dharma Satya Nusantara and Menthobi Karyatama 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 Menthobi Karyatama Raya are associated (or correlated) with Dharma Satya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dharma Satya Nusantara has no effect on the direction of Menthobi Karyatama i.e., Menthobi Karyatama and Dharma Satya go up and down completely randomly.
Pair Corralation between Menthobi Karyatama and Dharma Satya
Assuming the 90 days trading horizon Menthobi Karyatama is expected to generate 3.97 times less return on investment than Dharma Satya. In addition to that, Menthobi Karyatama is 1.34 times more volatile than Dharma Satya Nusantara. It trades about 0.01 of its total potential returns per unit of risk. Dharma Satya Nusantara is currently generating about 0.07 per unit of volatility. If you would invest 59,910 in Dharma Satya Nusantara on September 4, 2024 and sell it today you would earn a total of 52,090 from holding Dharma Satya Nusantara or generate 86.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menthobi Karyatama Raya vs. Dharma Satya Nusantara
Performance |
| Timeline |
| Menthobi Karyatama Raya |
| Dharma Satya Nusantara |
Menthobi Karyatama and Dharma Satya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menthobi Karyatama and Dharma Satya
The main advantage of trading using opposite Menthobi Karyatama and Dharma Satya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menthobi Karyatama position performs unexpectedly, Dharma Satya 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 Dharma Satya will offset losses from the drop in Dharma Satya's long position.| Menthobi Karyatama vs. Metro Healthcare Indonesia | Menthobi Karyatama vs. PT Charlie Hospital | Menthobi Karyatama vs. HK Metals Utama | Menthobi Karyatama vs. Alumindo Light Metal |
| Dharma Satya vs. Salim Ivomas Pratama | Dharma Satya vs. Sawit Sumbermas Sarana | Dharma Satya vs. Austindo Nusantara Jaya | Dharma Satya vs. Eagle High Plantations |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |