Correlation Between Hensel Davest and Anabatic Technologies
Can any of the company-specific risk be diversified away by investing in both Hensel Davest and Anabatic Technologies 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 Hensel Davest and Anabatic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hensel Davest Indonesia and Anabatic Technologies Tbk, you can compare the effects of market volatilities on Hensel Davest and Anabatic Technologies 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 Hensel Davest with a short position of Anabatic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hensel Davest and Anabatic Technologies.
Diversification Opportunities for Hensel Davest and Anabatic Technologies
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hensel and Anabatic is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hensel Davest Indonesia and Anabatic Technologies Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anabatic Technologies Tbk and Hensel Davest 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 Hensel Davest Indonesia are associated (or correlated) with Anabatic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anabatic Technologies Tbk has no effect on the direction of Hensel Davest i.e., Hensel Davest and Anabatic Technologies go up and down completely randomly.
Pair Corralation between Hensel Davest and Anabatic Technologies
Assuming the 90 days trading horizon Hensel Davest Indonesia is expected to generate 21.7 times more return on investment than Anabatic Technologies. However, Hensel Davest is 21.7 times more volatile than Anabatic Technologies Tbk. It trades about 0.04 of its potential returns per unit of risk. Anabatic Technologies Tbk is currently generating about 0.01 per unit of risk. If you would invest 6,300 in Hensel Davest Indonesia on August 28, 2024 and sell it today you would lose (4,800) from holding Hensel Davest Indonesia or give up 76.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hensel Davest Indonesia vs. Anabatic Technologies Tbk
Performance |
| Timeline |
| Hensel Davest Indonesia |
| Anabatic Technologies Tbk |
Hensel Davest and Anabatic Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hensel Davest and Anabatic Technologies
The main advantage of trading using opposite Hensel Davest and Anabatic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hensel Davest position performs unexpectedly, Anabatic Technologies 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 Anabatic Technologies will offset losses from the drop in Anabatic Technologies' long position.| Hensel Davest vs. Kioson Komersial Indonesia | Hensel Davest vs. Sentral Mitra Informatika | Hensel Davest vs. Multipolar Technology Tbk | Hensel Davest vs. Nusantara Voucher Distribution |
| Anabatic Technologies vs. Multipolar Tbk | Anabatic Technologies vs. Astra Graphia Tbk | Anabatic Technologies vs. Matahari Putra Prima | Anabatic Technologies vs. Ramayana Lestari Sentosa |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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