Correlation Between Indosterling Technomedia and DCI Indonesia
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and DCI Indonesia 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 Indosterling Technomedia and DCI Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosterling Technomedia Tbk and DCI Indonesia Tbk, you can compare the effects of market volatilities on Indosterling Technomedia and DCI Indonesia 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 Indosterling Technomedia with a short position of DCI Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and DCI Indonesia.
Diversification Opportunities for Indosterling Technomedia and DCI Indonesia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and DCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and DCI Indonesia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCI Indonesia Tbk and Indosterling Technomedia 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 Indosterling Technomedia Tbk are associated (or correlated) with DCI Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCI Indonesia Tbk has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and DCI Indonesia go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and DCI Indonesia
If you would invest 4,100,000 in DCI Indonesia Tbk on September 13, 2024 and sell it today you would earn a total of 150,000 from holding DCI Indonesia Tbk or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. DCI Indonesia Tbk
Performance |
| Timeline |
| Indosterling Technomedia |
| DCI Indonesia Tbk |
Indosterling Technomedia and DCI Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and DCI Indonesia
The main advantage of trading using opposite Indosterling Technomedia and DCI Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, DCI Indonesia 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 DCI Indonesia will offset losses from the drop in DCI Indonesia's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
| DCI Indonesia vs. Bank Artos Indonesia | DCI Indonesia vs. Elang Mahkota Teknologi | DCI Indonesia vs. Indointernet Tbk PT | DCI Indonesia vs. PT Bukalapak |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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