Correlation Between Habco Trans and Lima Dua
Can any of the company-specific risk be diversified away by investing in both Habco Trans and Lima Dua 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 Lima Dua 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 Lima Dua Lima, you can compare the effects of market volatilities on Habco Trans and Lima Dua 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 Lima Dua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Habco Trans and Lima Dua.
Diversification Opportunities for Habco Trans and Lima Dua
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Habco and Lima is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Habco Trans Maritima and Lima Dua Lima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lima Dua Lima 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 Lima Dua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lima Dua Lima has no effect on the direction of Habco Trans i.e., Habco Trans and Lima Dua go up and down completely randomly.
Pair Corralation between Habco Trans and Lima Dua
Assuming the 90 days trading horizon Habco Trans Maritima is expected to under-perform the Lima Dua. In addition to that, Habco Trans is 1.44 times more volatile than Lima Dua Lima. It trades about -0.01 of its total potential returns per unit of risk. Lima Dua Lima is currently generating about 0.06 per unit of volatility. If you would invest 11,400 in Lima Dua Lima on August 30, 2024 and sell it today you would earn a total of 300.00 from holding Lima Dua Lima or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Habco Trans Maritima vs. Lima Dua Lima
Performance |
| Timeline |
| Habco Trans Maritima |
| Lima Dua Lima |
Habco Trans and Lima Dua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Habco Trans and Lima Dua
The main advantage of trading using opposite Habco Trans and Lima Dua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Habco Trans position performs unexpectedly, Lima Dua 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 Lima Dua will offset losses from the drop in Lima Dua'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 |
| Lima Dua vs. PT Dewi Shri | Lima Dua vs. Bangun Karya Perkasa | Lima Dua vs. Gaya Abadi Sempurna | Lima Dua vs. Habco Trans Maritima |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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