Correlation Between Putra Mandiri and Darmi Bersaudara
Can any of the company-specific risk be diversified away by investing in both Putra Mandiri and Darmi Bersaudara 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 Putra Mandiri and Darmi Bersaudara into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putra Mandiri Jembar and Darmi Bersaudara Tbk, you can compare the effects of market volatilities on Putra Mandiri and Darmi Bersaudara 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 Putra Mandiri with a short position of Darmi Bersaudara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putra Mandiri and Darmi Bersaudara.
Diversification Opportunities for Putra Mandiri and Darmi Bersaudara
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Putra and Darmi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Putra Mandiri Jembar and Darmi Bersaudara Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Darmi Bersaudara Tbk and Putra Mandiri 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 Putra Mandiri Jembar are associated (or correlated) with Darmi Bersaudara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Darmi Bersaudara Tbk has no effect on the direction of Putra Mandiri i.e., Putra Mandiri and Darmi Bersaudara go up and down completely randomly.
Pair Corralation between Putra Mandiri and Darmi Bersaudara
If you would invest 12,100 in Putra Mandiri Jembar on September 13, 2024 and sell it today you would earn a total of 300.00 from holding Putra Mandiri Jembar or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putra Mandiri Jembar vs. Darmi Bersaudara Tbk
Performance |
| Timeline |
| Putra Mandiri Jembar |
| Darmi Bersaudara Tbk |
Putra Mandiri and Darmi Bersaudara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putra Mandiri and Darmi Bersaudara
The main advantage of trading using opposite Putra Mandiri and Darmi Bersaudara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putra Mandiri position performs unexpectedly, Darmi Bersaudara 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 Darmi Bersaudara will offset losses from the drop in Darmi Bersaudara's long position.| Putra Mandiri vs. Uni Charm Indonesia | Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Kencana Energi Lestari | Putra Mandiri vs. Bintang Oto Global |
| Darmi Bersaudara vs. Krakatau Steel Persero | Darmi Bersaudara vs. Arkadia Digital Media | Darmi Bersaudara vs. HK Metals Utama | Darmi Bersaudara vs. Equity Development Investment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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