Correlation Between Enseval Putra and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both Enseval Putra 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 Enseval Putra and Humpuss Intermoda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enseval Putra Megatrading and Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on Enseval Putra 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 Enseval Putra with a short position of Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enseval Putra and Humpuss Intermoda.
Diversification Opportunities for Enseval Putra and Humpuss Intermoda
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enseval and Humpuss is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enseval Putra Megatrading and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda and Enseval Putra 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 Enseval Putra Megatrading 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 Enseval Putra i.e., Enseval Putra and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between Enseval Putra and Humpuss Intermoda
Assuming the 90 days trading horizon Enseval Putra Megatrading is expected to under-perform the Humpuss Intermoda. But the stock apears to be less risky and, when comparing its historical volatility, Enseval Putra Megatrading is 8.16 times less risky than Humpuss Intermoda. The stock trades about -0.13 of its potential returns per unit of risk. The Humpuss Intermoda Transportasi is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 30,000 in Humpuss Intermoda Transportasi on August 30, 2024 and sell it today you would earn a total of 11,600 from holding Humpuss Intermoda Transportasi or generate 38.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enseval Putra Megatrading vs. Humpuss Intermoda Transportasi
Performance |
| Timeline |
| Enseval Putra Megatrading |
| Humpuss Intermoda |
Enseval Putra and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enseval Putra and Humpuss Intermoda
The main advantage of trading using opposite Enseval Putra and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enseval Putra 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.| Enseval Putra vs. Merdeka Copper Gold | Enseval Putra vs. Tower Bersama Infrastructure | Enseval Putra vs. Erajaya Swasembada Tbk | Enseval Putra vs. Surya Citra Media |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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