Correlation Between Duta Anggada and PT Net

Can any of the company-specific risk be diversified away by investing in both Duta Anggada and PT Net 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 Duta Anggada and PT Net into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Duta Anggada Realty and PT Net Visi, you can compare the effects of market volatilities on Duta Anggada and PT Net 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 Duta Anggada with a short position of PT Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Anggada and PT Net.

Diversification Opportunities for Duta Anggada and PT Net

-0.32

Correlation Coefficient

Duta Anggada  PT Net

Very good diversification

The 3 months correlation between Duta and NETV is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Duta Anggada Realty and PT Net Visi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Net Visi and Duta Anggada 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 Duta Anggada Realty are associated (or correlated) with PT Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Net Visi has no effect on the direction of Duta Anggada i.e., Duta Anggada and PT Net go up and down completely randomly.

Pair Corralation between Duta Anggada and PT Net

Assuming the 90 days trading horizon Duta Anggada Realty is expected to generate 0.74 times more return on investment than PT Net. However, Duta Anggada Realty is 1.35 times less risky than PT Net. It trades about 0.09 of its potential returns per unit of risk. PT Net Visi is currently generating about -0.19 per unit of risk. If you would invest  12,800  in Duta Anggada Realty on April 24, 2025 and sell it today you would earn a total of  1,400  from holding Duta Anggada Realty or generate 10.94% return on investment over 90 days.

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

Duta Anggada Realty  vs.  PT Net Visi

Duta Anggada Realty

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Duta Anggada Realty are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Duta Anggada disclosed solid returns over the last few months and may actually be approaching a breakup point.

PT Net Visi

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Net Visi 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 August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Duta Anggada and PT Net

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

The idea behind Duta Anggada Realty and PT Net Visi 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.