Correlation Between Dayamitra Telekomunikasi and Trimegah Karya
Can any of the company-specific risk be diversified away by investing in both Dayamitra Telekomunikasi and Trimegah Karya 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 Trimegah Karya 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 Trimegah Karya Pratama, you can compare the effects of market volatilities on Dayamitra Telekomunikasi and Trimegah Karya 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 Trimegah Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dayamitra Telekomunikasi and Trimegah Karya.
Diversification Opportunities for Dayamitra Telekomunikasi and Trimegah Karya
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dayamitra and Trimegah is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dayamitra Telekomunikasi PT and Trimegah Karya Pratama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Karya Pratama 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 Trimegah Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Karya Pratama has no effect on the direction of Dayamitra Telekomunikasi i.e., Dayamitra Telekomunikasi and Trimegah Karya go up and down completely randomly.
Pair Corralation between Dayamitra Telekomunikasi and Trimegah Karya
Assuming the 90 days trading horizon Dayamitra Telekomunikasi PT is expected to generate 0.94 times more return on investment than Trimegah Karya. However, Dayamitra Telekomunikasi PT is 1.06 times less risky than Trimegah Karya. It trades about -0.05 of its potential returns per unit of risk. Trimegah Karya Pratama is currently generating about -0.17 per unit of risk. If you would invest 63,000 in Dayamitra Telekomunikasi PT on September 1, 2024 and sell it today you would lose (1,500) from holding Dayamitra Telekomunikasi PT or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dayamitra Telekomunikasi PT vs. Trimegah Karya Pratama
Performance |
| Timeline |
| Dayamitra Telekomunikasi |
| Trimegah Karya Pratama |
Dayamitra Telekomunikasi and Trimegah Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dayamitra Telekomunikasi and Trimegah Karya
The main advantage of trading using opposite Dayamitra Telekomunikasi and Trimegah Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dayamitra Telekomunikasi position performs unexpectedly, Trimegah Karya 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 Trimegah Karya will offset losses from the drop in Trimegah Karya'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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