Correlation Between PT Techno9 and DCI Indonesia
Can any of the company-specific risk be diversified away by investing in both PT Techno9 and DCI Indonesia 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 PT Techno9 and DCI Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Techno9 Indonesia and DCI Indonesia Tbk, you can compare the effects of market volatilities on PT Techno9 and DCI Indonesia 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 PT Techno9 with a short position of DCI Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Techno9 and DCI Indonesia.
Diversification Opportunities for PT Techno9 and DCI Indonesia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NINE and DCI is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PT Techno9 Indonesia and DCI Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCI Indonesia Tbk and PT Techno9 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 PT Techno9 Indonesia are associated (or correlated) with DCI Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCI Indonesia Tbk has no effect on the direction of PT Techno9 i.e., PT Techno9 and DCI Indonesia go up and down completely randomly.
Pair Corralation between PT Techno9 and DCI Indonesia
Assuming the 90 days trading horizon PT Techno9 Indonesia is expected to generate 1.98 times more return on investment than DCI Indonesia. However, PT Techno9 is 1.98 times more volatile than DCI Indonesia Tbk. It trades about 0.22 of its potential returns per unit of risk. DCI Indonesia Tbk is currently generating about 0.15 per unit of risk. If you would invest 800.00 in PT Techno9 Indonesia on December 2, 2024 and sell it today you would earn a total of 21,400 from holding PT Techno9 Indonesia or generate 2675.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
PT Techno9 Indonesia vs. DCI Indonesia Tbk
Performance |
| Timeline |
| PT Techno9 Indonesia |
| DCI Indonesia Tbk |
PT Techno9 and DCI Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Techno9 and DCI Indonesia
The main advantage of trading using opposite PT Techno9 and DCI Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Techno9 position performs unexpectedly, DCI Indonesia 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 DCI Indonesia will offset losses from the drop in DCI Indonesia's long position.| PT Techno9 vs. Protech Mitra Perkasa | PT Techno9 vs. Media Nusantara Citra | PT Techno9 vs. Envy Technologies Indonesia | PT Techno9 vs. Alumindo Light Metal |
| DCI Indonesia vs. Bank Artos Indonesia | DCI Indonesia vs. Elang Mahkota Teknologi | DCI Indonesia vs. Indointernet Tbk PT | DCI Indonesia vs. PT Bukalapak |
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 Stocks Directory module to find actively traded stocks across global markets.
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