Correlation Between Pollux Properti and DMS Propertindo
Can any of the company-specific risk be diversified away by investing in both Pollux Properti 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 Pollux Properti and DMS Propertindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pollux Properti Indonesia and DMS Propertindo Tbk, you can compare the effects of market volatilities on Pollux Properti 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 Pollux Properti with a short position of DMS Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Properti and DMS Propertindo.
Diversification Opportunities for Pollux Properti and DMS Propertindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pollux and DMS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pollux Properti Indonesia 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 Pollux Properti 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 Pollux Properti Indonesia 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 Pollux Properti i.e., Pollux Properti and DMS Propertindo go up and down completely randomly.
Pair Corralation between Pollux Properti and DMS Propertindo
Assuming the 90 days trading horizon Pollux Properti Indonesia is expected to generate 0.64 times more return on investment than DMS Propertindo. However, Pollux Properti Indonesia is 1.57 times less risky than DMS Propertindo. It trades about -0.03 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 20,200 in Pollux Properti Indonesia on August 28, 2024 and sell it today you would lose (9,000) from holding Pollux Properti Indonesia or give up 44.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Pollux Properti Indonesia vs. DMS Propertindo Tbk
Performance |
| Timeline |
| Pollux Properti Indonesia |
| DMS Propertindo Tbk |
Pollux Properti and DMS Propertindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pollux Properti and DMS Propertindo
The main advantage of trading using opposite Pollux Properti and DMS Propertindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pollux Properti 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.| Pollux Properti vs. Transcoal Pacific Tbk | Pollux Properti vs. Medikaloka Hermina PT | Pollux Properti vs. Maha Properti Indonesia | Pollux Properti vs. Jaya Sukses Makmur |
| DMS Propertindo vs. Karya Bersama Anugerah | DMS Propertindo vs. Andalan Sakti Primaindo | DMS Propertindo vs. Perintis Triniti Properti | DMS Propertindo vs. Repower Asia Indonesia |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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