Correlation Between Pollux Properti and DMS Propertindo

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

By analyzing existing cross correlation between Pollux Properti Indonesia and DMS Propertindo Tbk, you can compare the effects of market volatilities on Pollux Properti and DMS Propertindo 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 Pollux Properti with a short position of DMS Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pollux Properti and DMS Propertindo.

Diversification Opportunities for Pollux Properti and DMS Propertindo

0.0

Correlation Coefficient

Pollux Properti  DMS Propertindo

Pay attention - limited upside

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

Pair Corralation between Pollux Properti and DMS Propertindo

If you would invest  1,000.00  in DMS Propertindo Tbk on December 30, 2024 and sell it today you would lose (200.00) from holding DMS Propertindo Tbk or give up 20.0% of portfolio value over 90 days.

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

Pollux Properti Indonesia  vs.  DMS Propertindo Tbk

Pollux Properti Indonesia

Risk-Adjusted Performance

Very Weak

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

DMS Propertindo Tbk

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DMS Propertindo Tbk are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, DMS Propertindo may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Pollux Properti and DMS Propertindo

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

The idea behind Pollux Properti Indonesia and DMS Propertindo Tbk 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.