Correlation Between Bima Sakti and DMS Propertindo
Can any of the company-specific risk be diversified away by investing in both Bima Sakti and DMS Propertindo 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 Bima Sakti and DMS Propertindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bima Sakti Pertiwi and DMS Propertindo Tbk, you can compare the effects of market volatilities on Bima Sakti and DMS Propertindo 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 Bima Sakti with a short position of DMS Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bima Sakti and DMS Propertindo.
Diversification Opportunities for Bima Sakti and DMS Propertindo
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bima and DMS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bima Sakti Pertiwi and DMS Propertindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DMS Propertindo Tbk and Bima Sakti 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 Bima Sakti Pertiwi are associated (or correlated) with DMS Propertindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DMS Propertindo Tbk has no effect on the direction of Bima Sakti i.e., Bima Sakti and DMS Propertindo go up and down completely randomly.
Pair Corralation between Bima Sakti and DMS Propertindo
Assuming the 90 days trading horizon Bima Sakti Pertiwi is expected to generate 0.14 times more return on investment than DMS Propertindo. However, Bima Sakti Pertiwi is 7.09 times less risky than DMS Propertindo. It trades about 0.07 of its potential returns per unit of risk. DMS Propertindo Tbk is currently generating about -0.07 per unit of risk. If you would invest 5,200 in Bima Sakti Pertiwi on November 3, 2024 and sell it today you would earn a total of 100.00 from holding Bima Sakti Pertiwi or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bima Sakti Pertiwi vs. DMS Propertindo Tbk
Performance |
| Timeline |
| Bima Sakti Pertiwi |
| DMS Propertindo Tbk |
Bima Sakti and DMS Propertindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bima Sakti and DMS Propertindo
The main advantage of trading using opposite Bima Sakti and DMS Propertindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bima Sakti position performs unexpectedly, DMS Propertindo 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 DMS Propertindo will offset losses from the drop in DMS Propertindo's long position.| Bima Sakti vs. Hotel Sahid Jaya | Bima Sakti vs. Surya Citra Media | Bima Sakti vs. PT Homeco Victoria | Bima Sakti vs. Indosterling Technomedia Tbk |
| DMS Propertindo vs. Bima Sakti Pertiwi | DMS Propertindo vs. Karya Bersama Anugerah | DMS Propertindo vs. Pollux Properti Indonesia | DMS Propertindo vs. Surya Permata Andalan |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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