Correlation Between Sinergi Inti and Dewata Freight

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

By analyzing existing cross correlation between Sinergi Inti Plastindo and Dewata Freight International, you can compare the effects of market volatilities on Sinergi Inti and Dewata Freight 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 Sinergi Inti with a short position of Dewata Freight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinergi Inti and Dewata Freight.

Diversification Opportunities for Sinergi Inti and Dewata Freight

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Correlation Coefficient

Sinergi Inti  Dewata Freight

Pay attention - limited upside

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

Pair Corralation between Sinergi Inti and Dewata Freight

If you would invest  600.00  in Dewata Freight International on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Dewata Freight International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Sinergi Inti Plastindo  vs.  Dewata Freight International

Sinergi Inti Plastindo

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Sinergi Inti Plastindo 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.

Dewata Freight Inter

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dewata Freight International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Dewata Freight 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 Sinergi Inti and Dewata Freight

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

The idea behind Sinergi Inti Plastindo and Dewata Freight International 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.