Correlation Between Dana Brata and Pelita Samudera
Can any of the company-specific risk be diversified away by investing in both Dana Brata and Pelita Samudera 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 Dana Brata and Pelita Samudera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Brata Luhur and Pelita Samudera Shipping, you can compare the effects of market volatilities on Dana Brata and Pelita Samudera 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 Dana Brata with a short position of Pelita Samudera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana Brata and Pelita Samudera.
Diversification Opportunities for Dana Brata and Pelita Samudera
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dana and Pelita is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Dana Brata Luhur and Pelita Samudera Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pelita Samudera Shipping and Dana Brata 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 Dana Brata Luhur are associated (or correlated) with Pelita Samudera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pelita Samudera Shipping has no effect on the direction of Dana Brata i.e., Dana Brata and Pelita Samudera go up and down completely randomly.
Pair Corralation between Dana Brata and Pelita Samudera
Assuming the 90 days trading horizon Dana Brata Luhur is expected to generate 1.89 times more return on investment than Pelita Samudera. However, Dana Brata is 1.89 times more volatile than Pelita Samudera Shipping. It trades about 0.09 of its potential returns per unit of risk. Pelita Samudera Shipping is currently generating about -0.11 per unit of risk. If you would invest 61,576 in Dana Brata Luhur on August 31, 2024 and sell it today you would earn a total of 1,424 from holding Dana Brata Luhur or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dana Brata Luhur vs. Pelita Samudera Shipping
Performance |
| Timeline |
| Dana Brata Luhur |
| Pelita Samudera Shipping |
Dana Brata and Pelita Samudera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana Brata and Pelita Samudera
The main advantage of trading using opposite Dana Brata and Pelita Samudera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana Brata position performs unexpectedly, Pelita Samudera 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 Pelita Samudera will offset losses from the drop in Pelita Samudera's long position.| Dana Brata vs. Pelita Samudera Shipping | Dana Brata vs. Trans Power Marine | Dana Brata vs. Kencana Energi Lestari | Dana Brata vs. Pelayaran Nelly Dwi |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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