Correlation Between Wahana Inti and Dayamitra Telekomunikasi

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

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

Diversification Opportunities for Wahana Inti and Dayamitra Telekomunikasi

-0.01

Correlation Coefficient

Wahana Inti  Dayamitra Telekomunikasi

Good diversification

The 3 months correlation between Wahana and Dayamitra is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Inti MakmurTbk and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi and Wahana Inti 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 Wahana Inti MakmurTbk 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 Wahana Inti i.e., Wahana Inti and Dayamitra Telekomunikasi go up and down completely randomly.

Pair Corralation between Wahana Inti and Dayamitra Telekomunikasi

Assuming the 90 days trading horizon Wahana Inti MakmurTbk is expected to under-perform the Dayamitra Telekomunikasi. In addition to that, Wahana Inti is 1.71 times more volatile than Dayamitra Telekomunikasi PT. It trades about -0.05 of its total potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about 0.07 per unit of volatility. If you would invest  64,000  in Dayamitra Telekomunikasi PT on October 24, 2024 and sell it today you would earn a total of  4,000  from holding Dayamitra Telekomunikasi PT or generate 6.25% return on investment over 90 days.

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

Wahana Inti MakmurTbk  vs.  Dayamitra Telekomunikasi PT

Wahana Inti MakmurTbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wahana Inti MakmurTbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Dayamitra Telekomunikasi

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dayamitra Telekomunikasi PT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Dayamitra Telekomunikasi may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Wahana Inti and Dayamitra Telekomunikasi

The main advantage of trading using opposite Wahana Inti and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Inti 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.

The idea behind Wahana Inti MakmurTbk and Dayamitra Telekomunikasi PT 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.