Correlation Between Global Sukses and Dayamitra Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Global Sukses and Dayamitra Telekomunikasi 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 Global Sukses and Dayamitra Telekomunikasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Sukses Solusi and Dayamitra Telekomunikasi PT, you can compare the effects of market volatilities on Global Sukses and Dayamitra Telekomunikasi 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 Global Sukses with a short position of Dayamitra Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Sukses and Dayamitra Telekomunikasi.
Diversification Opportunities for Global Sukses and Dayamitra Telekomunikasi
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Dayamitra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Global Sukses Solusi and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi and Global Sukses 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 Global Sukses Solusi are associated (or correlated) with Dayamitra Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dayamitra Telekomunikasi has no effect on the direction of Global Sukses i.e., Global Sukses and Dayamitra Telekomunikasi go up and down completely randomly.
Pair Corralation between Global Sukses and Dayamitra Telekomunikasi
Assuming the 90 days trading horizon Global Sukses Solusi is expected to generate 2.51 times more return on investment than Dayamitra Telekomunikasi. However, Global Sukses is 2.51 times more volatile than Dayamitra Telekomunikasi PT. It trades about 0.02 of its potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about 0.01 per unit of risk. If you would invest 5,500 in Global Sukses Solusi on November 28, 2024 and sell it today you would lose (100.00) from holding Global Sukses Solusi or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Global Sukses Solusi vs. Dayamitra Telekomunikasi PT
Performance |
| Timeline |
| Global Sukses Solusi |
| Dayamitra Telekomunikasi |
Global Sukses and Dayamitra Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Sukses and Dayamitra Telekomunikasi
The main advantage of trading using opposite Global Sukses and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Sukses position performs unexpectedly, Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi will offset losses from the drop in Dayamitra Telekomunikasi's long position.| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
| Dayamitra Telekomunikasi vs. PT Bukalapak | Dayamitra Telekomunikasi vs. PT Sarana Menara | Dayamitra Telekomunikasi vs. GoTo Gojek Tokopedia | Dayamitra Telekomunikasi vs. Elang Mahkota Teknologi |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |