Correlation Between Greenlane Holdings and PT Hanjaya
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and PT Hanjaya 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 Greenlane Holdings and PT Hanjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and PT Hanjaya Mandala, you can compare the effects of market volatilities on Greenlane Holdings and PT Hanjaya 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 Greenlane Holdings with a short position of PT Hanjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and PT Hanjaya.
Diversification Opportunities for Greenlane Holdings and PT Hanjaya
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenlane and PHJMF is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and PT Hanjaya Mandala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hanjaya Mandala and Greenlane Holdings 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 Greenlane Holdings are associated (or correlated) with PT Hanjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hanjaya Mandala has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and PT Hanjaya go up and down completely randomly.
Pair Corralation between Greenlane Holdings and PT Hanjaya
Given the investment horizon of 90 days Greenlane Holdings is expected to under-perform the PT Hanjaya. In addition to that, Greenlane Holdings is 1.87 times more volatile than PT Hanjaya Mandala. It trades about -0.05 of its total potential returns per unit of risk. PT Hanjaya Mandala is currently generating about 0.04 per unit of volatility. If you would invest 4.00 in PT Hanjaya Mandala on August 28, 2024 and sell it today you would earn a total of 0.00 from holding PT Hanjaya Mandala or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Greenlane Holdings vs. PT Hanjaya Mandala
Performance |
| Timeline |
| Greenlane Holdings |
| PT Hanjaya Mandala |
Greenlane Holdings and PT Hanjaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and PT Hanjaya
The main advantage of trading using opposite Greenlane Holdings and PT Hanjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, PT Hanjaya 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 Hanjaya will offset losses from the drop in PT Hanjaya's long position.| Greenlane Holdings vs. Steven Madden | Greenlane Holdings vs. Vera Bradley | Greenlane Holdings vs. Caleres | Greenlane Holdings vs. Rocky Brands |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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