Correlation Between Arkadia Digital and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Arkadia Digital 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 Arkadia Digital and Humpuss Intermoda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkadia Digital Media and Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Arkadia Digital 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 Arkadia Digital with a short position of Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkadia Digital and Humpuss Intermoda.
Diversification Opportunities for Arkadia Digital and Humpuss Intermoda
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Arkadia and Humpuss is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Arkadia Digital Media and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda and Arkadia Digital 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 Arkadia Digital Media 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 Arkadia Digital i.e., Arkadia Digital and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Arkadia Digital and Humpuss Intermoda
Assuming the 90 days trading horizon Arkadia Digital Media is expected to generate 1.22 times more return on investment than Humpuss Intermoda. However, Arkadia Digital is 1.22 times more volatile than Humpuss Intermoda Transportasi. It trades about 0.18 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about -0.18 per unit of risk. If you would invest 1,600 in Arkadia Digital Media on October 23, 2024 and sell it today you would earn a total of 200.00 from holding Arkadia Digital Media or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkadia Digital Media vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Arkadia Digital Media |
| Humpuss Intermoda |
Arkadia Digital and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkadia Digital and Humpuss Intermoda
The main advantage of trading using opposite Arkadia Digital and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkadia Digital 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.| Arkadia Digital vs. Electronic City Indonesia | Arkadia Digital vs. MD Pictures Tbk | Arkadia Digital vs. Bintang Oto Global | Arkadia Digital vs. Graha Layar Prima |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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