Correlation Between Communication Cable and PT Hatten
Can any of the company-specific risk be diversified away by investing in both Communication Cable and PT Hatten 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 Communication Cable and PT Hatten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Communication Cable Systems and PT Hatten Bali, you can compare the effects of market volatilities on Communication Cable and PT Hatten 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 Communication Cable with a short position of PT Hatten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Communication Cable and PT Hatten.
Diversification Opportunities for Communication Cable and PT Hatten
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Communication and WINE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Communication Cable Systems and PT Hatten Bali in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hatten Bali and Communication Cable 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 Communication Cable Systems are associated (or correlated) with PT Hatten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hatten Bali has no effect on the direction of Communication Cable i.e., Communication Cable and PT Hatten go up and down completely randomly.
Pair Corralation between Communication Cable and PT Hatten
Assuming the 90 days trading horizon Communication Cable Systems is expected to under-perform the PT Hatten. In addition to that, Communication Cable is 1.05 times more volatile than PT Hatten Bali. It trades about -0.1 of its total potential returns per unit of risk. PT Hatten Bali is currently generating about 0.05 per unit of volatility. If you would invest 30,768 in PT Hatten Bali on September 1, 2024 and sell it today you would earn a total of 4,232 from holding PT Hatten Bali or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Communication Cable Systems vs. PT Hatten Bali
Performance |
| Timeline |
| Communication Cable |
| PT Hatten Bali |
Communication Cable and PT Hatten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Communication Cable and PT Hatten
The main advantage of trading using opposite Communication Cable and PT Hatten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Communication Cable position performs unexpectedly, PT Hatten 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 Hatten will offset losses from the drop in PT Hatten's long position.| Communication Cable vs. Berkah Prima Perkasa | Communication Cable vs. Hartadinata Abadi Tbk | Communication Cable vs. Estika Tata Tiara | Communication Cable vs. Garudafood Putra Putri |
| PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk | PT Hatten vs. Autopedia Sukses Lestari |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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