Correlation Between Habco Trans and Sentral Mitra
Can any of the company-specific risk be diversified away by investing in both Habco Trans and Sentral Mitra 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 Habco Trans and Sentral Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Habco Trans Maritima and Sentral Mitra Informatika, you can compare the effects of market volatilities on Habco Trans and Sentral Mitra 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 Habco Trans with a short position of Sentral Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Habco Trans and Sentral Mitra.
Diversification Opportunities for Habco Trans and Sentral Mitra
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Habco and Sentral is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Habco Trans Maritima and Sentral Mitra Informatika in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentral Mitra Informatika and Habco Trans 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 Habco Trans Maritima are associated (or correlated) with Sentral Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentral Mitra Informatika has no effect on the direction of Habco Trans i.e., Habco Trans and Sentral Mitra go up and down completely randomly.
Pair Corralation between Habco Trans and Sentral Mitra
Assuming the 90 days trading horizon Habco Trans Maritima is expected to generate 0.89 times more return on investment than Sentral Mitra. However, Habco Trans Maritima is 1.13 times less risky than Sentral Mitra. It trades about 0.02 of its potential returns per unit of risk. Sentral Mitra Informatika is currently generating about -0.02 per unit of risk. If you would invest 26,692 in Habco Trans Maritima on August 31, 2024 and sell it today you would earn a total of 2,108 from holding Habco Trans Maritima or generate 7.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Habco Trans Maritima vs. Sentral Mitra Informatika
Performance |
| Timeline |
| Habco Trans Maritima |
| Sentral Mitra Informatika |
Habco Trans and Sentral Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Habco Trans and Sentral Mitra
The main advantage of trading using opposite Habco Trans and Sentral Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Habco Trans position performs unexpectedly, Sentral Mitra 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 Sentral Mitra will offset losses from the drop in Sentral Mitra's long position.| Habco Trans vs. PT Dewi Shri | Habco Trans vs. PT Arkora Hydro | Habco Trans vs. PT Hasnur Internasional | Habco Trans vs. PT Sari Kreasi |
| Sentral Mitra vs. PT Dewi Shri | Sentral Mitra vs. Habco Trans Maritima | Sentral Mitra vs. PT Jhonlin Agro | Sentral Mitra 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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