Correlation Between GREENX METALS and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and HEXINDO ADIPERKASA 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 GREENX METALS and HEXINDO ADIPERKASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and HEXINDO ADIPERKASA, you can compare the effects of market volatilities on GREENX METALS and HEXINDO ADIPERKASA 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 GREENX METALS with a short position of HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and HEXINDO ADIPERKASA.
Diversification Opportunities for GREENX METALS and HEXINDO ADIPERKASA
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and HEXINDO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of GREENX METALS i.e., GREENX METALS and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between GREENX METALS and HEXINDO ADIPERKASA
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the HEXINDO ADIPERKASA. In addition to that, GREENX METALS is 3.27 times more volatile than HEXINDO ADIPERKASA. It trades about 0.0 of its total potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about 0.02 per unit of volatility. If you would invest 29.00 in HEXINDO ADIPERKASA on September 15, 2024 and sell it today you would earn a total of 1.00 from holding HEXINDO ADIPERKASA or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. HEXINDO ADIPERKASA
Performance |
| Timeline |
| GREENX METALS LTD |
| HEXINDO ADIPERKASA |
GREENX METALS and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and HEXINDO ADIPERKASA
The main advantage of trading using opposite GREENX METALS and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
| HEXINDO ADIPERKASA vs. GREENX METALS LTD | HEXINDO ADIPERKASA vs. SINGAPORE AIRLINES | HEXINDO ADIPERKASA vs. Jacquet Metal Service | HEXINDO ADIPERKASA vs. Kaiser Aluminum |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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