Correlation Between PT Hasnur and PT Dewi
Can any of the company-specific risk be diversified away by investing in both PT Hasnur and PT Dewi 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 PT Hasnur and PT Dewi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Hasnur Internasional and PT Dewi Shri, you can compare the effects of market volatilities on PT Hasnur and PT Dewi 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 PT Hasnur with a short position of PT Dewi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hasnur and PT Dewi.
Diversification Opportunities for PT Hasnur and PT Dewi
Very weak diversification
The 3 months correlation between HAIS and DEWI is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Hasnur Internasional and PT Dewi Shri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Dewi Shri and PT Hasnur 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 PT Hasnur Internasional are associated (or correlated) with PT Dewi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Dewi Shri has no effect on the direction of PT Hasnur i.e., PT Hasnur and PT Dewi go up and down completely randomly.
Pair Corralation between PT Hasnur and PT Dewi
Assuming the 90 days trading horizon PT Hasnur Internasional is expected to generate 0.5 times more return on investment than PT Dewi. However, PT Hasnur Internasional is 2.02 times less risky than PT Dewi. It trades about 0.01 of its potential returns per unit of risk. PT Dewi Shri is currently generating about -0.06 per unit of risk. If you would invest 21,814 in PT Hasnur Internasional on August 31, 2024 and sell it today you would earn a total of 386.00 from holding PT Hasnur Internasional or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
PT Hasnur Internasional vs. PT Dewi Shri
Performance |
| Timeline |
| PT Hasnur Internasional |
| PT Dewi Shri |
PT Hasnur and PT Dewi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hasnur and PT Dewi
The main advantage of trading using opposite PT Hasnur and PT Dewi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hasnur position performs unexpectedly, PT Dewi 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 Dewi will offset losses from the drop in PT Dewi's long position.| PT Hasnur vs. PAM Mineral Tbk | PT Hasnur vs. Pelayaran Nelly Dwi | PT Hasnur vs. Bintang Samudera Mandiri | PT Hasnur vs. Trans Power Marine |
| PT Dewi vs. Habco Trans Maritima | PT Dewi vs. PT Cilacap Samudera | PT Dewi vs. PT Sari Kreasi | PT Dewi 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 Stocks Directory module to find actively traded stocks across global markets.
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