Correlation Between Triputra Agro and Dharma Polimetal
Can any of the company-specific risk be diversified away by investing in both Triputra Agro and Dharma Polimetal 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 Triputra Agro and Dharma Polimetal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triputra Agro Persada and Dharma Polimetal Tbk, you can compare the effects of market volatilities on Triputra Agro and Dharma Polimetal 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 Triputra Agro with a short position of Dharma Polimetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and Dharma Polimetal.
Diversification Opportunities for Triputra Agro and Dharma Polimetal
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Triputra and Dharma is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and Dharma Polimetal Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dharma Polimetal Tbk and Triputra Agro 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 Triputra Agro Persada are associated (or correlated) with Dharma Polimetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dharma Polimetal Tbk has no effect on the direction of Triputra Agro i.e., Triputra Agro and Dharma Polimetal go up and down completely randomly.
Pair Corralation between Triputra Agro and Dharma Polimetal
Assuming the 90 days trading horizon Triputra Agro Persada is expected to generate 1.64 times more return on investment than Dharma Polimetal. However, Triputra Agro is 1.64 times more volatile than Dharma Polimetal Tbk. It trades about -0.1 of its potential returns per unit of risk. Dharma Polimetal Tbk is currently generating about -0.24 per unit of risk. If you would invest 81,494 in Triputra Agro Persada on August 27, 2024 and sell it today you would lose (4,994) from holding Triputra Agro Persada or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triputra Agro Persada vs. Dharma Polimetal Tbk
Performance |
| Timeline |
| Triputra Agro Persada |
| Dharma Polimetal Tbk |
Triputra Agro and Dharma Polimetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and Dharma Polimetal
The main advantage of trading using opposite Triputra Agro and Dharma Polimetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro position performs unexpectedly, Dharma Polimetal 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 Dharma Polimetal will offset losses from the drop in Dharma Polimetal's long position.| Triputra Agro vs. Dharma Satya Nusantara | Triputra Agro vs. Saratoga Investama Sedaya | Triputra Agro vs. Surya Esa Perkasa | Triputra Agro vs. Elang Mahkota Teknologi |
| Dharma Polimetal vs. Triputra Agro Persada | Dharma Polimetal vs. Autopedia Sukses Lestari | Dharma Polimetal vs. Cisarua Mountain Dairy | Dharma Polimetal vs. Surya Esa Perkasa |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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