Correlation Between HEIA and PT Bank
Can any of the company-specific risk be diversified away by investing in both HEIA and PT Bank 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 HEIA and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEIA and PT Bank Maybank, you can compare the effects of market volatilities on HEIA and PT Bank 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 HEIA with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEIA and PT Bank.
Diversification Opportunities for HEIA and PT Bank
Excellent diversification
The 3 months correlation between HEIA and BOZA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HEIA and PT Bank Maybank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Maybank and HEIA 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 HEIA are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Maybank has no effect on the direction of HEIA i.e., HEIA and PT Bank go up and down completely randomly.
Pair Corralation between HEIA and PT Bank
Given the investment horizon of 90 days HEIA is expected to generate 0.32 times more return on investment than PT Bank. However, HEIA is 3.12 times less risky than PT Bank. It trades about 0.09 of its potential returns per unit of risk. PT Bank Maybank is currently generating about 0.02 per unit of risk. If you would invest 12,194 in HEIA on August 30, 2024 and sell it today you would earn a total of 7,928 from holding HEIA or generate 65.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.49% |
| Values | Daily Returns |
HEIA vs. PT Bank Maybank
Performance |
| Timeline |
| HEIA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| PT Bank Maybank |
HEIA and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEIA and PT Bank
The main advantage of trading using opposite HEIA and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEIA position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| HEIA vs. Merit Medical Systems | HEIA vs. Apollo Medical Holdings | HEIA vs. MEDICAL FACILITIES NEW | HEIA vs. SBM OFFSHORE |
| PT Bank vs. Stewart Information Services | PT Bank vs. MOVIE GAMES SA | PT Bank vs. UNIVMUSIC GRPADR050 | PT Bank vs. DATAGROUP SE |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |