Correlation Between PT Hasnur and Geoprima Solusi
Can any of the company-specific risk be diversified away by investing in both PT Hasnur and Geoprima Solusi 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 Geoprima Solusi 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 Geoprima Solusi Tbk, you can compare the effects of market volatilities on PT Hasnur and Geoprima Solusi 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 Geoprima Solusi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hasnur and Geoprima Solusi.
Diversification Opportunities for PT Hasnur and Geoprima Solusi
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between HAIS and Geoprima is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding PT Hasnur Internasional and Geoprima Solusi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geoprima Solusi Tbk 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 Geoprima Solusi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geoprima Solusi Tbk has no effect on the direction of PT Hasnur i.e., PT Hasnur and Geoprima Solusi go up and down completely randomly.
Pair Corralation between PT Hasnur and Geoprima Solusi
Assuming the 90 days trading horizon PT Hasnur is expected to generate 6.97 times less return on investment than Geoprima Solusi. But when comparing it to its historical volatility, PT Hasnur Internasional is 2.45 times less risky than Geoprima Solusi. It trades about 0.02 of its potential returns per unit of risk. Geoprima Solusi Tbk is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13,900 in Geoprima Solusi Tbk on August 30, 2024 and sell it today you would earn a total of 21,700 from holding Geoprima Solusi Tbk or generate 156.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hasnur Internasional vs. Geoprima Solusi Tbk
Performance |
| Timeline |
| PT Hasnur Internasional |
| Geoprima Solusi Tbk |
PT Hasnur and Geoprima Solusi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hasnur and Geoprima Solusi
The main advantage of trading using opposite PT Hasnur and Geoprima Solusi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hasnur position performs unexpectedly, Geoprima Solusi 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 Geoprima Solusi will offset losses from the drop in Geoprima Solusi'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 |
| Geoprima Solusi vs. Mandala Multifinance Tbk | Geoprima Solusi vs. PT Techno9 Indonesia | Geoprima Solusi vs. Bank BRISyariah Tbk | Geoprima Solusi vs. Bumi Resources Tbk |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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