Correlation Between Unggul Indah and Dana Brata
Can any of the company-specific risk be diversified away by investing in both Unggul Indah and Dana Brata 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 Unggul Indah and Dana Brata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unggul Indah Cahaya and Dana Brata Luhur, you can compare the effects of market volatilities on Unggul Indah and Dana Brata 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 Unggul Indah with a short position of Dana Brata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unggul Indah and Dana Brata.
Diversification Opportunities for Unggul Indah and Dana Brata
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Unggul and Dana is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Unggul Indah Cahaya and Dana Brata Luhur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Brata Luhur and Unggul Indah 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 Unggul Indah Cahaya are associated (or correlated) with Dana Brata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Brata Luhur has no effect on the direction of Unggul Indah i.e., Unggul Indah and Dana Brata go up and down completely randomly.
Pair Corralation between Unggul Indah and Dana Brata
Assuming the 90 days trading horizon Unggul Indah Cahaya is expected to generate 1.14 times more return on investment than Dana Brata. However, Unggul Indah is 1.14 times more volatile than Dana Brata Luhur. It trades about 0.04 of its potential returns per unit of risk. Dana Brata Luhur is currently generating about -0.11 per unit of risk. If you would invest 780,000 in Unggul Indah Cahaya on September 2, 2024 and sell it today you would earn a total of 20,000 from holding Unggul Indah Cahaya or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unggul Indah Cahaya vs. Dana Brata Luhur
Performance |
| Timeline |
| Unggul Indah Cahaya |
| Dana Brata Luhur |
Unggul Indah and Dana Brata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unggul Indah and Dana Brata
The main advantage of trading using opposite Unggul Indah and Dana Brata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unggul Indah position performs unexpectedly, Dana Brata 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 Dana Brata will offset losses from the drop in Dana Brata's long position.| Unggul Indah vs. Trias Sentosa Tbk | Unggul Indah vs. Suparma Tbk | Unggul Indah vs. Tembaga Mulia Semanan | Unggul Indah vs. Surya Toto Indonesia |
| Dana Brata vs. Pelita Samudera Shipping | Dana Brata vs. Trans Power Marine | Dana Brata vs. Kencana Energi Lestari | Dana Brata vs. Pelayaran Nelly Dwi |
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 Stocks Directory module to find actively traded stocks across global markets.
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