Correlation Between Dayamitra Telekomunikasi and Semacom Integrated
Can any of the company-specific risk be diversified away by investing in both Dayamitra Telekomunikasi and Semacom Integrated 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 Dayamitra Telekomunikasi and Semacom Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dayamitra Telekomunikasi PT and Semacom Integrated Tbk, you can compare the effects of market volatilities on Dayamitra Telekomunikasi and Semacom Integrated 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 Dayamitra Telekomunikasi with a short position of Semacom Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dayamitra Telekomunikasi and Semacom Integrated.
Diversification Opportunities for Dayamitra Telekomunikasi and Semacom Integrated
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dayamitra and Semacom is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Dayamitra Telekomunikasi PT and Semacom Integrated Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semacom Integrated Tbk and Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi PT are associated (or correlated) with Semacom Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semacom Integrated Tbk has no effect on the direction of Dayamitra Telekomunikasi i.e., Dayamitra Telekomunikasi and Semacom Integrated go up and down completely randomly.
Pair Corralation between Dayamitra Telekomunikasi and Semacom Integrated
Assuming the 90 days trading horizon Dayamitra Telekomunikasi is expected to generate 40.25 times less return on investment than Semacom Integrated. But when comparing it to its historical volatility, Dayamitra Telekomunikasi PT is 2.08 times less risky than Semacom Integrated. It trades about 0.0 of its potential returns per unit of risk. Semacom Integrated Tbk is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,000 in Semacom Integrated Tbk on September 2, 2024 and sell it today you would earn a total of 600.00 from holding Semacom Integrated Tbk or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dayamitra Telekomunikasi PT vs. Semacom Integrated Tbk
Performance |
| Timeline |
| Dayamitra Telekomunikasi |
| Semacom Integrated Tbk |
Dayamitra Telekomunikasi and Semacom Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dayamitra Telekomunikasi and Semacom Integrated
The main advantage of trading using opposite Dayamitra Telekomunikasi and Semacom Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dayamitra Telekomunikasi position performs unexpectedly, Semacom Integrated 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 Semacom Integrated will offset losses from the drop in Semacom Integrated's long position.| Dayamitra Telekomunikasi vs. PT Bukalapak | Dayamitra Telekomunikasi vs. PT Sarana Menara | Dayamitra Telekomunikasi vs. GoTo Gojek Tokopedia | Dayamitra Telekomunikasi vs. Elang Mahkota Teknologi |
| Semacom Integrated vs. PT Dewi Shri | Semacom Integrated vs. PT Data Sinergitama | Semacom Integrated vs. PAM Mineral Tbk | Semacom Integrated vs. Autopedia Sukses Lestari |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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