Correlation Between Solusi Sinergi and DCI Indonesia
Can any of the company-specific risk be diversified away by investing in both Solusi Sinergi 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 Solusi Sinergi and DCI Indonesia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solusi Sinergi Digital and DCI Indonesia Tbk, you can compare the effects of market volatilities on Solusi Sinergi 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 Solusi Sinergi with a short position of DCI Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solusi Sinergi and DCI Indonesia.
Diversification Opportunities for Solusi Sinergi and DCI Indonesia
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Solusi and DCI is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Solusi Sinergi Digital 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 Solusi Sinergi 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 Solusi Sinergi Digital 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 Solusi Sinergi i.e., Solusi Sinergi and DCI Indonesia go up and down completely randomly.
Pair Corralation between Solusi Sinergi and DCI Indonesia
Assuming the 90 days trading horizon Solusi Sinergi Digital is expected to generate 0.98 times more return on investment than DCI Indonesia. However, Solusi Sinergi Digital is 1.02 times less risky than DCI Indonesia. It trades about 0.09 of its potential returns per unit of risk. DCI Indonesia Tbk is currently generating about 0.04 per unit of risk. If you would invest 18,880 in Solusi Sinergi Digital on September 12, 2024 and sell it today you would earn a total of 22,920 from holding Solusi Sinergi Digital or generate 121.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.69% |
| Values | Daily Returns |
Solusi Sinergi Digital vs. DCI Indonesia Tbk
Performance |
| Timeline |
| Solusi Sinergi Digital |
| DCI Indonesia Tbk |
Solusi Sinergi and DCI Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solusi Sinergi and DCI Indonesia
The main advantage of trading using opposite Solusi Sinergi and DCI Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solusi Sinergi 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.| Solusi Sinergi vs. DCI Indonesia Tbk | Solusi Sinergi vs. Digital Mediatama Maxima | Solusi Sinergi vs. Multipolar Technology Tbk | Solusi Sinergi vs. Bank Net Indonesia |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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