Correlation Between Duta Anggada and Perdana Gapura

Can any of the company-specific risk be diversified away by investing in both Duta Anggada and Perdana Gapura 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 Duta Anggada and Perdana Gapura into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duta Anggada Realty and Perdana Gapura Prima, you can compare the effects of market volatilities on Duta Anggada and Perdana Gapura 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 Duta Anggada with a short position of Perdana Gapura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Anggada and Perdana Gapura.

Diversification Opportunities for Duta Anggada and Perdana Gapura

-0.01

Correlation Coefficient

Duta Anggada  Perdana Gapura

Good diversification

The 3 months correlation between Duta and Perdana is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Duta Anggada Realty and Perdana Gapura Prima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perdana Gapura Prima and Duta Anggada 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 Duta Anggada Realty are associated (or correlated) with Perdana Gapura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perdana Gapura Prima has no effect on the direction of Duta Anggada i.e., Duta Anggada and Perdana Gapura go up and down completely randomly.

Pair Corralation between Duta Anggada and Perdana Gapura

Assuming the 90 days trading horizon Duta Anggada Realty is expected to generate 4.59 times more return on investment than Perdana Gapura. However, Duta Anggada is 4.59 times more volatile than Perdana Gapura Prima. It trades about 0.0 of its potential returns per unit of risk. Perdana Gapura Prima is currently generating about -0.05 per unit of risk. If you would invest  20,400  in Duta Anggada Realty on September 13, 2024 and sell it today you would lose (2,400) from holding Duta Anggada Realty or give up 11.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Duta Anggada Realty  vs.  Perdana Gapura Prima

Duta Anggada Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Duta Anggada Realty has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Duta Anggada is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Perdana Gapura Prima

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perdana Gapura Prima has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Perdana Gapura is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Duta Anggada and Perdana Gapura

The main advantage of trading using opposite Duta Anggada and Perdana Gapura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Anggada position performs unexpectedly, Perdana Gapura 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 Perdana Gapura will offset losses from the drop in Perdana Gapura's long position.

The idea behind Duta Anggada Realty and Perdana Gapura Prima pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.