Correlation Between Adi Sarana and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Adi Sarana and Humpuss Intermoda 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 Adi Sarana and Humpuss Intermoda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adi Sarana Armada and Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Adi Sarana and Humpuss Intermoda 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 Adi Sarana with a short position of Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adi Sarana and Humpuss Intermoda.
Diversification Opportunities for Adi Sarana and Humpuss Intermoda
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adi and Humpuss is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Adi Sarana Armada and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda and Adi Sarana 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 Adi Sarana Armada are associated (or correlated) with Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of Adi Sarana i.e., Adi Sarana and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Adi Sarana and Humpuss Intermoda
Assuming the 90 days trading horizon Adi Sarana Armada is expected to generate 0.51 times more return on investment than Humpuss Intermoda. However, Adi Sarana Armada is 1.95 times less risky than Humpuss Intermoda. It trades about 0.01 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about -0.27 per unit of risk. If you would invest 66,500 in Adi Sarana Armada on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Adi Sarana Armada or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adi Sarana Armada vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Adi Sarana Armada |
| Humpuss Intermoda |
Adi Sarana and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adi Sarana and Humpuss Intermoda
The main advantage of trading using opposite Adi Sarana and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adi Sarana position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda's long position.| Adi Sarana vs. Surya Esa Perkasa | Adi Sarana vs. Tower Bersama Infrastructure | Adi Sarana vs. Erajaya Swasembada Tbk | Adi Sarana vs. Bekasi Fajar Industrial |
| Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Fortune Mate Indonesia |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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