Correlation Between Adaro Minerals and PT Hasnur
Can any of the company-specific risk be diversified away by investing in both Adaro Minerals and PT Hasnur 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 Adaro Minerals and PT Hasnur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adaro Minerals Indonesia and PT Hasnur Internasional, you can compare the effects of market volatilities on Adaro Minerals and PT Hasnur 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 Adaro Minerals with a short position of PT Hasnur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adaro Minerals and PT Hasnur.
Diversification Opportunities for Adaro Minerals and PT Hasnur
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adaro and HAIS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Adaro Minerals Indonesia and PT Hasnur Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hasnur Internasional and Adaro Minerals 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 Adaro Minerals Indonesia are associated (or correlated) with PT Hasnur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hasnur Internasional has no effect on the direction of Adaro Minerals i.e., Adaro Minerals and PT Hasnur go up and down completely randomly.
Pair Corralation between Adaro Minerals and PT Hasnur
Assuming the 90 days trading horizon Adaro Minerals Indonesia is expected to generate 1.32 times more return on investment than PT Hasnur. However, Adaro Minerals is 1.32 times more volatile than PT Hasnur Internasional. It trades about 0.05 of its potential returns per unit of risk. PT Hasnur Internasional is currently generating about 0.0 per unit of risk. If you would invest 84,500 in Adaro Minerals Indonesia on September 2, 2024 and sell it today you would earn a total of 38,500 from holding Adaro Minerals Indonesia or generate 45.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adaro Minerals Indonesia vs. PT Hasnur Internasional
Performance |
| Timeline |
| Adaro Minerals Indonesia |
| PT Hasnur Internasional |
Adaro Minerals and PT Hasnur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adaro Minerals and PT Hasnur
The main advantage of trading using opposite Adaro Minerals and PT Hasnur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adaro Minerals position performs unexpectedly, PT Hasnur 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 Hasnur will offset losses from the drop in PT Hasnur's long position.| Adaro Minerals vs. Bank Artos Indonesia | Adaro Minerals vs. GoTo Gojek Tokopedia | Adaro Minerals vs. Elang Mahkota Teknologi | Adaro Minerals vs. PT Bukalapak |
| PT Hasnur vs. PAM Mineral Tbk | PT Hasnur vs. Pelayaran Nelly Dwi | PT Hasnur vs. Bintang Samudera Mandiri | PT Hasnur vs. Trans Power Marine |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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