Correlation Between Avia Avian and PT Hetzer
Can any of the company-specific risk be diversified away by investing in both Avia Avian and PT Hetzer 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 Avia Avian and PT Hetzer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avia Avian PT and PT Hetzer Medical, you can compare the effects of market volatilities on Avia Avian and PT Hetzer 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 Avia Avian with a short position of PT Hetzer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avia Avian and PT Hetzer.
Diversification Opportunities for Avia Avian and PT Hetzer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Avia and MEDS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avia Avian PT and PT Hetzer Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hetzer Medical and Avia Avian 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 Avia Avian PT are associated (or correlated) with PT Hetzer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hetzer Medical has no effect on the direction of Avia Avian i.e., Avia Avian and PT Hetzer go up and down completely randomly.
Pair Corralation between Avia Avian and PT Hetzer
Assuming the 90 days trading horizon Avia Avian PT is expected to generate 0.52 times more return on investment than PT Hetzer. However, Avia Avian PT is 1.92 times less risky than PT Hetzer. It trades about -0.02 of its potential returns per unit of risk. PT Hetzer Medical is currently generating about -0.03 per unit of risk. If you would invest 57,889 in Avia Avian PT on September 13, 2024 and sell it today you would lose (17,289) from holding Avia Avian PT or give up 29.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avia Avian PT vs. PT Hetzer Medical
Performance |
| Timeline |
| Avia Avian PT |
| PT Hetzer Medical |
Avia Avian and PT Hetzer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avia Avian and PT Hetzer
The main advantage of trading using opposite Avia Avian and PT Hetzer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avia Avian position performs unexpectedly, PT Hetzer 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 Hetzer will offset losses from the drop in PT Hetzer's long position.| Avia Avian vs. Dayamitra Telekomunikasi PT | Avia Avian vs. Cisarua Mountain Dairy | Avia Avian vs. PT Bukalapak | Avia Avian vs. Sumber Alfaria Trijaya |
| PT Hetzer vs. Bangun Karya Perkasa | PT Hetzer vs. PT Dewi Shri | PT Hetzer vs. PT Sari Kreasi | PT Hetzer vs. PT Kusuma Kemindo |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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