Correlation Between PT Janu and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both PT Janu 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 PT Janu and Humpuss Intermoda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Janu Putra and Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on PT Janu 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 PT Janu with a short position of Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Janu and Humpuss Intermoda.
Diversification Opportunities for PT Janu and Humpuss Intermoda
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AYAM and Humpuss is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PT Janu Putra and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda and PT Janu 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 Janu Putra 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 PT Janu i.e., PT Janu and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between PT Janu and Humpuss Intermoda
Assuming the 90 days trading horizon PT Janu Putra is expected to generate 1.76 times more return on investment than Humpuss Intermoda. However, PT Janu is 1.76 times more volatile than Humpuss Intermoda Transportasi. It trades about 0.29 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about 0.1 per unit of risk. If you would invest 12,000 in PT Janu Putra on September 4, 2024 and sell it today you would earn a total of 3,600 from holding PT Janu Putra or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Janu Putra vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| PT Janu Putra |
| Humpuss Intermoda |
PT Janu and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Janu and Humpuss Intermoda
The main advantage of trading using opposite PT Janu and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Janu 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.| PT Janu vs. Humpuss Intermoda Transportasi | PT Janu vs. Ciptadana Asset Management | PT Janu vs. Eastparc Hotel Tbk | PT Janu vs. PT Charlie Hospital |
| Humpuss Intermoda vs. Weha Transportasi Indonesia | Humpuss Intermoda vs. Mitra Pinasthika Mustika | Humpuss Intermoda vs. Jakarta Int Hotels | Humpuss Intermoda vs. Asuransi Harta Aman |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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