Correlation Between Diagnos Laboratorium and PT Harapan
Can any of the company-specific risk be diversified away by investing in both Diagnos Laboratorium and PT Harapan 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 Diagnos Laboratorium and PT Harapan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Diagnos Laboratorium Utama and PT Harapan Duta, you can compare the effects of market volatilities on Diagnos Laboratorium and PT Harapan 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 Diagnos Laboratorium with a short position of PT Harapan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diagnos Laboratorium and PT Harapan.
Diversification Opportunities for Diagnos Laboratorium and PT Harapan
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Diagnos and HOPE is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Diagnos Laboratorium Utama and PT Harapan Duta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Harapan Duta and Diagnos Laboratorium 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 Diagnos Laboratorium Utama are associated (or correlated) with PT Harapan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Harapan Duta has no effect on the direction of Diagnos Laboratorium i.e., Diagnos Laboratorium and PT Harapan go up and down completely randomly.
Pair Corralation between Diagnos Laboratorium and PT Harapan
Assuming the 90 days trading horizon Diagnos Laboratorium Utama is expected to generate 0.84 times more return on investment than PT Harapan. However, Diagnos Laboratorium Utama is 1.19 times less risky than PT Harapan. It trades about -0.01 of its potential returns per unit of risk. PT Harapan Duta is currently generating about -0.01 per unit of risk. If you would invest 28,400 in Diagnos Laboratorium Utama on September 1, 2024 and sell it today you would lose (6,400) from holding Diagnos Laboratorium Utama or give up 22.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diagnos Laboratorium Utama vs. PT Harapan Duta
Performance |
| Timeline |
| Diagnos Laboratorium |
| PT Harapan Duta |
Diagnos Laboratorium and PT Harapan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diagnos Laboratorium and PT Harapan
The main advantage of trading using opposite Diagnos Laboratorium and PT Harapan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diagnos Laboratorium position performs unexpectedly, PT Harapan 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 Harapan will offset losses from the drop in PT Harapan's long position.| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Itama Ranoraya | Diagnos Laboratorium vs. Digital Mediatama Maxima |
| PT Harapan vs. Ladangbaja Murni PT | PT Harapan vs. Berkah Beton Sadaya | PT Harapan vs. Cahayaputra Asa Keramik | PT Harapan vs. Diagnos Laboratorium Utama |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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