Correlation Between Digital Mediatama and Putra Rajawali
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and Putra Rajawali 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 Digital Mediatama and Putra Rajawali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Mediatama Maxima and Putra Rajawali Kencana, you can compare the effects of market volatilities on Digital Mediatama and Putra Rajawali 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 Digital Mediatama with a short position of Putra Rajawali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and Putra Rajawali.
Diversification Opportunities for Digital Mediatama and Putra Rajawali
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digital and Putra is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and Putra Rajawali Kencana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Rajawali Kencana and Digital Mediatama 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 Digital Mediatama Maxima are associated (or correlated) with Putra Rajawali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Rajawali Kencana has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and Putra Rajawali go up and down completely randomly.
Pair Corralation between Digital Mediatama and Putra Rajawali
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 1.24 times more return on investment than Putra Rajawali. However, Digital Mediatama is 1.24 times more volatile than Putra Rajawali Kencana. It trades about 0.2 of its potential returns per unit of risk. Putra Rajawali Kencana is currently generating about -0.09 per unit of risk. If you would invest 12,600 in Digital Mediatama Maxima on September 14, 2024 and sell it today you would earn a total of 10,600 from holding Digital Mediatama Maxima or generate 84.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Digital Mediatama Maxima vs. Putra Rajawali Kencana
Performance |
Timeline |
Digital Mediatama Maxima |
Putra Rajawali Kencana |
Digital Mediatama and Putra Rajawali Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Digital Mediatama and Putra Rajawali
The main advantage of trading using opposite Digital Mediatama and Putra Rajawali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, Putra Rajawali 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 Putra Rajawali will offset losses from the drop in Putra Rajawali's long position.Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. Bank Yudha Bhakti | Digital Mediatama vs. NFC Indonesia PT |
Putra Rajawali vs. PT Trimuda Nuansa | Putra Rajawali vs. Yelooo Integra Datanet | Putra Rajawali vs. Transcoal Pacific Tbk | Putra Rajawali vs. Weha Transportasi Indonesia |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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