Correlation Between PT Cilacap and Habco Trans
Can any of the company-specific risk be diversified away by investing in both PT Cilacap and Habco Trans 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 PT Cilacap and Habco Trans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Cilacap Samudera and Habco Trans Maritima, you can compare the effects of market volatilities on PT Cilacap and Habco Trans 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 PT Cilacap with a short position of Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Cilacap and Habco Trans.
Diversification Opportunities for PT Cilacap and Habco Trans
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASHA and Habco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PT Cilacap Samudera and Habco Trans Maritima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habco Trans Maritima and PT Cilacap 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 PT Cilacap Samudera are associated (or correlated) with Habco Trans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habco Trans Maritima has no effect on the direction of PT Cilacap i.e., PT Cilacap and Habco Trans go up and down completely randomly.
Pair Corralation between PT Cilacap and Habco Trans
Assuming the 90 days trading horizon PT Cilacap Samudera is expected to under-perform the Habco Trans. In addition to that, PT Cilacap is 1.4 times more volatile than Habco Trans Maritima. It trades about -0.06 of its total potential returns per unit of risk. Habco Trans Maritima is currently generating about 0.01 per unit of volatility. If you would invest 30,724 in Habco Trans Maritima on August 28, 2024 and sell it today you would lose (2,124) from holding Habco Trans Maritima or give up 6.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Cilacap Samudera vs. Habco Trans Maritima
Performance |
| Timeline |
| PT Cilacap Samudera |
| Habco Trans Maritima |
PT Cilacap and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Cilacap and Habco Trans
The main advantage of trading using opposite PT Cilacap and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Cilacap position performs unexpectedly, Habco Trans 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 Habco Trans will offset losses from the drop in Habco Trans' long position.| PT Cilacap vs. Bank Central Asia | PT Cilacap vs. Bank Rakyat Indonesia | PT Cilacap vs. Bayan Resources Tbk | PT Cilacap vs. Bank Mandiri Persero |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |