Correlation Between Era Media and PT Hatten
Can any of the company-specific risk be diversified away by investing in both Era Media 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 Era Media and PT Hatten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Era Media Sejahtera and PT Hatten Bali, you can compare the effects of market volatilities on Era Media 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 Era Media with a short position of PT Hatten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Era Media and PT Hatten.
Diversification Opportunities for Era Media and PT Hatten
Very good diversification
The 3 months correlation between Era and WINE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Era Media Sejahtera 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 Era Media 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 Era Media Sejahtera 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 Era Media i.e., Era Media and PT Hatten go up and down completely randomly.
Pair Corralation between Era Media and PT Hatten
Assuming the 90 days trading horizon Era Media Sejahtera is expected to generate 0.54 times more return on investment than PT Hatten. However, Era Media Sejahtera is 1.84 times less risky than PT Hatten. It trades about -0.05 of its potential returns per unit of risk. PT Hatten Bali is currently generating about -0.04 per unit of risk. If you would invest 5,600 in Era Media Sejahtera on September 2, 2024 and sell it today you would lose (100.00) from holding Era Media Sejahtera or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Era Media Sejahtera vs. PT Hatten Bali
Performance |
| Timeline |
| Era Media Sejahtera |
| PT Hatten Bali |
Era Media and PT Hatten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Era Media and PT Hatten
The main advantage of trading using opposite Era Media and PT Hatten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Era Media 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.| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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