Correlation Between Protech Mitra and Dyandra Media
Can any of the company-specific risk be diversified away by investing in both Protech Mitra and Dyandra Media 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 Protech Mitra and Dyandra Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protech Mitra Perkasa and Dyandra Media International, you can compare the effects of market volatilities on Protech Mitra and Dyandra Media 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 Protech Mitra with a short position of Dyandra Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protech Mitra and Dyandra Media.
Diversification Opportunities for Protech Mitra and Dyandra Media
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Protech and Dyandra is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Protech Mitra Perkasa and Dyandra Media International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dyandra Media Intern and Protech Mitra 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 Protech Mitra Perkasa are associated (or correlated) with Dyandra Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dyandra Media Intern has no effect on the direction of Protech Mitra i.e., Protech Mitra and Dyandra Media go up and down completely randomly.
Pair Corralation between Protech Mitra and Dyandra Media
Assuming the 90 days trading horizon Protech Mitra is expected to generate 2.9 times less return on investment than Dyandra Media. In addition to that, Protech Mitra is 1.29 times more volatile than Dyandra Media International. It trades about 0.01 of its total potential returns per unit of risk. Dyandra Media International is currently generating about 0.02 per unit of volatility. If you would invest 9,300 in Dyandra Media International on November 28, 2024 and sell it today you would earn a total of 800.00 from holding Dyandra Media International or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protech Mitra Perkasa vs. Dyandra Media International
Performance |
| Timeline |
| Protech Mitra Perkasa |
| Dyandra Media Intern |
Protech Mitra and Dyandra Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protech Mitra and Dyandra Media
The main advantage of trading using opposite Protech Mitra and Dyandra Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protech Mitra position performs unexpectedly, Dyandra Media 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 Dyandra Media will offset losses from the drop in Dyandra Media's long position.| Protech Mitra vs. Pelayaran Nelly Dwi | Protech Mitra vs. Trans Power Marine | Protech Mitra vs. Sidomulyo Selaras Tbk | Protech Mitra vs. Bali Towerindo Sentra |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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