Correlation Between PT Hasnur and J Resources
Can any of the company-specific risk be diversified away by investing in both PT Hasnur and J Resources 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 J Resources 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 J Resources Asia, you can compare the effects of market volatilities on PT Hasnur and J Resources 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 J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hasnur and J Resources.
Diversification Opportunities for PT Hasnur and J Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HAIS and PSAB is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PT Hasnur Internasional and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia 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 J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of PT Hasnur i.e., PT Hasnur and J Resources go up and down completely randomly.
Pair Corralation between PT Hasnur and J Resources
Assuming the 90 days trading horizon PT Hasnur is expected to generate 94.22 times less return on investment than J Resources. But when comparing it to its historical volatility, PT Hasnur Internasional is 3.61 times less risky than J Resources. It trades about 0.0 of its potential returns per unit of risk. J Resources Asia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15,200 in J Resources Asia on November 28, 2024 and sell it today you would earn a total of 13,400 from holding J Resources Asia or generate 88.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hasnur Internasional vs. J Resources Asia
Performance |
| Timeline |
| PT Hasnur Internasional |
| J Resources Asia |
PT Hasnur and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hasnur and J Resources
The main advantage of trading using opposite PT Hasnur and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hasnur position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' 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 |
| J Resources vs. Merdeka Copper Gold | J Resources vs. Golden Eagle Energy | J Resources vs. Rukun Raharja Tbk | J Resources vs. Wilton Makmur 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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