Correlation Between Dayamitra Telekomunikasi and Sumber Tani
Can any of the company-specific risk be diversified away by investing in both Dayamitra Telekomunikasi and Sumber Tani 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 Sumber Tani 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 Sumber Tani Agung, you can compare the effects of market volatilities on Dayamitra Telekomunikasi and Sumber Tani 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 Sumber Tani. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dayamitra Telekomunikasi and Sumber Tani.
Diversification Opportunities for Dayamitra Telekomunikasi and Sumber Tani
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dayamitra and Sumber is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dayamitra Telekomunikasi PT and Sumber Tani Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumber Tani Agung 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 Sumber Tani. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumber Tani Agung has no effect on the direction of Dayamitra Telekomunikasi i.e., Dayamitra Telekomunikasi and Sumber Tani go up and down completely randomly.
Pair Corralation between Dayamitra Telekomunikasi and Sumber Tani
Assuming the 90 days trading horizon Dayamitra Telekomunikasi PT is expected to generate 2.03 times more return on investment than Sumber Tani. However, Dayamitra Telekomunikasi is 2.03 times more volatile than Sumber Tani Agung. It trades about 0.09 of its potential returns per unit of risk. Sumber Tani Agung is currently generating about 0.09 per unit of risk. If you would invest 65,500 in Dayamitra Telekomunikasi PT on November 4, 2024 and sell it today you would earn a total of 1,500 from holding Dayamitra Telekomunikasi PT or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dayamitra Telekomunikasi PT vs. Sumber Tani Agung
Performance |
| Timeline |
| Dayamitra Telekomunikasi |
| Sumber Tani Agung |
Dayamitra Telekomunikasi and Sumber Tani Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dayamitra Telekomunikasi and Sumber Tani
The main advantage of trading using opposite Dayamitra Telekomunikasi and Sumber Tani positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dayamitra Telekomunikasi position performs unexpectedly, Sumber Tani 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 Sumber Tani will offset losses from the drop in Sumber Tani'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 |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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