Correlation Between Destinasi Tirta and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Destinasi Tirta and Mitra Keluarga 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 Destinasi Tirta and Mitra Keluarga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Destinasi Tirta Nusantara and Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Destinasi Tirta and Mitra Keluarga 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 Destinasi Tirta with a short position of Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Destinasi Tirta and Mitra Keluarga.
Diversification Opportunities for Destinasi Tirta and Mitra Keluarga
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Destinasi and Mitra is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Destinasi Tirta Nusantara and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat and Destinasi Tirta 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 Destinasi Tirta Nusantara are associated (or correlated) with Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Destinasi Tirta i.e., Destinasi Tirta and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Destinasi Tirta and Mitra Keluarga
Assuming the 90 days trading horizon Destinasi Tirta Nusantara is expected to generate 0.34 times more return on investment than Mitra Keluarga. However, Destinasi Tirta Nusantara is 2.93 times less risky than Mitra Keluarga. It trades about 0.06 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.08 per unit of risk. If you would invest 26,800 in Destinasi Tirta Nusantara on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Destinasi Tirta Nusantara or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Destinasi Tirta Nusantara vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Destinasi Tirta Nusantara |
| Mitra Keluarga Karyasehat |
Destinasi Tirta and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Destinasi Tirta and Mitra Keluarga
The main advantage of trading using opposite Destinasi Tirta and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Destinasi Tirta position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga's long position.| Destinasi Tirta vs. Panorama Sentrawisata Tbk | Destinasi Tirta vs. Pembangunan Graha Lestari | Destinasi Tirta vs. Hotel Sahid Jaya | Destinasi Tirta vs. Pembangunan Jaya Ancol |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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