Correlation Between Digital Mediatama and PT Saraswanti
Can any of the company-specific risk be diversified away by investing in both Digital Mediatama and PT Saraswanti 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 PT Saraswanti 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 PT Saraswanti Indoland, you can compare the effects of market volatilities on Digital Mediatama and PT Saraswanti 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 PT Saraswanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Mediatama and PT Saraswanti.
Diversification Opportunities for Digital Mediatama and PT Saraswanti
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digital and SWID is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Digital Mediatama Maxima and PT Saraswanti Indoland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Saraswanti Indoland 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 PT Saraswanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Saraswanti Indoland has no effect on the direction of Digital Mediatama i.e., Digital Mediatama and PT Saraswanti go up and down completely randomly.
Pair Corralation between Digital Mediatama and PT Saraswanti
Assuming the 90 days trading horizon Digital Mediatama Maxima is expected to generate 2.96 times more return on investment than PT Saraswanti. However, Digital Mediatama is 2.96 times more volatile than PT Saraswanti Indoland. It trades about 0.19 of its potential returns per unit of risk. PT Saraswanti Indoland is currently generating about -0.11 per unit of risk. If you would invest 12,400 in Digital Mediatama Maxima on September 26, 2024 and sell it today you would earn a total of 10,800 from holding Digital Mediatama Maxima or generate 87.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Digital Mediatama Maxima vs. PT Saraswanti Indoland
Performance |
Timeline |
Digital Mediatama Maxima |
PT Saraswanti Indoland |
Digital Mediatama and PT Saraswanti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Digital Mediatama and PT Saraswanti
The main advantage of trading using opposite Digital Mediatama and PT Saraswanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Mediatama position performs unexpectedly, PT Saraswanti 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 Saraswanti will offset losses from the drop in PT Saraswanti's long position.Digital Mediatama vs. Elang Mahkota Teknologi | Digital Mediatama vs. M Cash Integrasi | Digital Mediatama vs. Bank Artos Indonesia | Digital Mediatama vs. NFC Indonesia PT |
PT Saraswanti vs. Jaya Sukses Makmur | PT Saraswanti vs. Hanson International Tbk | PT Saraswanti vs. Pollux Investasi Internasional | PT Saraswanti vs. Adhi Commuter Properti |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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