Correlation Between Dyandra Media and Ciptadana Asset

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

By analyzing existing cross correlation between Dyandra Media International and Ciptadana Asset Management, you can compare the effects of market volatilities on Dyandra Media and Ciptadana Asset 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 Dyandra Media with a short position of Ciptadana Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dyandra Media and Ciptadana Asset.

Diversification Opportunities for Dyandra Media and Ciptadana Asset

-0.46

Correlation Coefficient

Dyandra Media  Ciptadana Asset

Very good diversification

The 3 months correlation between Dyandra and Ciptadana is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dyandra Media International and Ciptadana Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciptadana Asset Mana and Dyandra Media 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 Dyandra Media International are associated (or correlated) with Ciptadana Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciptadana Asset Mana has no effect on the direction of Dyandra Media i.e., Dyandra Media and Ciptadana Asset go up and down completely randomly.

Pair Corralation between Dyandra Media and Ciptadana Asset

Assuming the 90 days trading horizon Dyandra Media International is expected to under-perform the Ciptadana Asset. In addition to that, Dyandra Media is 1.0 times more volatile than Ciptadana Asset Management. It trades about -0.12 of its total potential returns per unit of risk. Ciptadana Asset Management is currently generating about 0.03 per unit of volatility. If you would invest  5,626  in Ciptadana Asset Management on September 14, 2024 and sell it today you would earn a total of  174.00  from holding Ciptadana Asset Management or generate 3.09% return on investment over 90 days.

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

Dyandra Media International  vs.  Ciptadana Asset Management

Dyandra Media Intern

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dyandra Media International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ciptadana Asset Mana

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ciptadana Asset Management are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Ciptadana Asset is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Dyandra Media and Ciptadana Asset

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

The idea behind Dyandra Media International and Ciptadana Asset Management 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.