Correlation Between Trimegah Karya and Dayamitra Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Trimegah Karya 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 Trimegah Karya and Dayamitra Telekomunikasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trimegah Karya Pratama and Dayamitra Telekomunikasi PT, you can compare the effects of market volatilities on Trimegah Karya 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 Trimegah Karya with a short position of Dayamitra Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trimegah Karya and Dayamitra Telekomunikasi.
Diversification Opportunities for Trimegah Karya and Dayamitra Telekomunikasi
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Trimegah and Dayamitra is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Trimegah Karya Pratama and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi and Trimegah Karya 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 Trimegah Karya Pratama 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 Trimegah Karya i.e., Trimegah Karya and Dayamitra Telekomunikasi go up and down completely randomly.
Pair Corralation between Trimegah Karya and Dayamitra Telekomunikasi
Assuming the 90 days trading horizon Trimegah Karya Pratama is expected to under-perform the Dayamitra Telekomunikasi. In addition to that, Trimegah Karya is 1.77 times more volatile than Dayamitra Telekomunikasi PT. It trades about -0.04 of its total potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about 0.01 per unit of volatility. If you would invest 61,382 in Dayamitra Telekomunikasi PT on November 28, 2024 and sell it today you would earn a total of 118.00 from holding Dayamitra Telekomunikasi PT or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trimegah Karya Pratama vs. Dayamitra Telekomunikasi PT
Performance |
| Timeline |
| Trimegah Karya Pratama |
| Dayamitra Telekomunikasi |
Trimegah Karya and Dayamitra Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trimegah Karya and Dayamitra Telekomunikasi
The main advantage of trading using opposite Trimegah Karya and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trimegah Karya 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.| Trimegah Karya vs. Siloam International Hospitals | Trimegah Karya vs. Mahaka Media Tbk | Trimegah Karya vs. Garuda Metalindo Tbk | Trimegah Karya vs. Hero Supermarket Tbk |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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