Correlation Between Damai Sejahtera and Imago Mulia
Can any of the company-specific risk be diversified away by investing in both Damai Sejahtera and Imago Mulia 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 Damai Sejahtera and Imago Mulia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Damai Sejahtera Abadi and Imago Mulia Persada, you can compare the effects of market volatilities on Damai Sejahtera and Imago Mulia 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 Damai Sejahtera with a short position of Imago Mulia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Damai Sejahtera and Imago Mulia.
Diversification Opportunities for Damai Sejahtera and Imago Mulia
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Damai and Imago is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Damai Sejahtera Abadi and Imago Mulia Persada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imago Mulia Persada and Damai Sejahtera 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 Damai Sejahtera Abadi are associated (or correlated) with Imago Mulia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imago Mulia Persada has no effect on the direction of Damai Sejahtera i.e., Damai Sejahtera and Imago Mulia go up and down completely randomly.
Pair Corralation between Damai Sejahtera and Imago Mulia
Assuming the 90 days trading horizon Damai Sejahtera is expected to generate 1.64 times less return on investment than Imago Mulia. But when comparing it to its historical volatility, Damai Sejahtera Abadi is 2.62 times less risky than Imago Mulia. It trades about 0.11 of its potential returns per unit of risk. Imago Mulia Persada is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,894 in Imago Mulia Persada on September 1, 2024 and sell it today you would earn a total of 3,406 from holding Imago Mulia Persada or generate 69.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Damai Sejahtera Abadi vs. Imago Mulia Persada
Performance |
| Timeline |
| Damai Sejahtera Abadi |
| Imago Mulia Persada |
Damai Sejahtera and Imago Mulia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Damai Sejahtera and Imago Mulia
The main advantage of trading using opposite Damai Sejahtera and Imago Mulia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Damai Sejahtera position performs unexpectedly, Imago Mulia 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 Imago Mulia will offset losses from the drop in Imago Mulia's long position.| Damai Sejahtera vs. PT Sunter Lakeside | Damai Sejahtera vs. Trisula Textile Industries | Damai Sejahtera vs. Diagnos Laboratorium Utama | Damai Sejahtera vs. Bank Net Indonesia |
| Imago Mulia vs. Panca Anugrah Wisesa | Imago Mulia vs. PT Sunter Lakeside | Imago Mulia vs. Nusa Palapa Gemilang | Imago Mulia vs. Ulima Nitra PT |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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