Correlation Between Triputra Agro and Dayamitra Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Triputra Agro 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 Triputra Agro and Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi PT, you can compare the effects of market volatilities on Triputra Agro 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 Triputra Agro with a short position of Dayamitra Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and Dayamitra Telekomunikasi.
Diversification Opportunities for Triputra Agro and Dayamitra Telekomunikasi
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Triputra and Dayamitra is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi 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 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 Triputra Agro i.e., Triputra Agro and Dayamitra Telekomunikasi go up and down completely randomly.
Pair Corralation between Triputra Agro and Dayamitra Telekomunikasi
Assuming the 90 days trading horizon Triputra Agro Persada is expected to generate 1.81 times more return on investment than Dayamitra Telekomunikasi. However, Triputra Agro is 1.81 times more volatile than Dayamitra Telekomunikasi PT. It trades about 0.19 of its potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about -0.02 per unit of risk. If you would invest 71,500 in Triputra Agro Persada on October 24, 2024 and sell it today you would earn a total of 6,000 from holding Triputra Agro Persada or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triputra Agro Persada vs. Dayamitra Telekomunikasi PT
Performance |
| Timeline |
| Triputra Agro Persada |
| Dayamitra Telekomunikasi |
Triputra Agro and Dayamitra Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and Dayamitra Telekomunikasi
The main advantage of trading using opposite Triputra Agro and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro 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.| Triputra Agro vs. Dharma Satya Nusantara | Triputra Agro vs. Saratoga Investama Sedaya | Triputra Agro vs. Surya Esa Perkasa | Triputra Agro vs. Elang Mahkota Teknologi |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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