Correlation Between Dillards and PT Mitra

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

By analyzing existing cross correlation between Dillards and PT Mitra Adiperkasa, you can compare the effects of market volatilities on Dillards and PT Mitra 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 Dillards with a short position of PT Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dillards and PT Mitra.

Diversification Opportunities for Dillards and PT Mitra

0.0

Correlation Coefficient

Dillards  PT Mitra

Pay attention - limited upside

The 3 months correlation between Dillards and PMDKF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dillards and PT Mitra Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Mitra Adiperkasa and Dillards 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 Dillards are associated (or correlated) with PT Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Mitra Adiperkasa has no effect on the direction of Dillards i.e., Dillards and PT Mitra go up and down completely randomly.

Pair Corralation between Dillards and PT Mitra

If you would invest  41,845  in Dillards on November 28, 2024 and sell it today you would earn a total of  4,176  from holding Dillards or generate 9.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dillards  vs.  PT Mitra Adiperkasa

Dillards

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dillards are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, Dillards may actually be approaching a critical reversion point that can send shares even higher in March 2025.

PT Mitra Adiperkasa

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Mitra Adiperkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, PT Mitra is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dillards and PT Mitra

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

The idea behind Dillards and PT Mitra Adiperkasa 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.