Correlation Between Hexindo Adiperkasa and Astra Graphia
Can any of the company-specific risk be diversified away by investing in both Hexindo Adiperkasa and Astra Graphia 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 Hexindo Adiperkasa and Astra Graphia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexindo Adiperkasa Tbk and Astra Graphia Tbk, you can compare the effects of market volatilities on Hexindo Adiperkasa and Astra Graphia 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 Hexindo Adiperkasa with a short position of Astra Graphia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexindo Adiperkasa and Astra Graphia.
Diversification Opportunities for Hexindo Adiperkasa and Astra Graphia
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hexindo and Astra is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hexindo Adiperkasa Tbk and Astra Graphia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Graphia Tbk and Hexindo Adiperkasa 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 Hexindo Adiperkasa Tbk are associated (or correlated) with Astra Graphia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Graphia Tbk has no effect on the direction of Hexindo Adiperkasa i.e., Hexindo Adiperkasa and Astra Graphia go up and down completely randomly.
Pair Corralation between Hexindo Adiperkasa and Astra Graphia
Assuming the 90 days trading horizon Hexindo Adiperkasa Tbk is expected to generate 0.9 times more return on investment than Astra Graphia. However, Hexindo Adiperkasa Tbk is 1.11 times less risky than Astra Graphia. It trades about 0.05 of its potential returns per unit of risk. Astra Graphia Tbk is currently generating about 0.04 per unit of risk. If you would invest 480,000 in Hexindo Adiperkasa Tbk on October 26, 2024 and sell it today you would earn a total of 3,000 from holding Hexindo Adiperkasa Tbk or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hexindo Adiperkasa Tbk vs. Astra Graphia Tbk
Performance |
| Timeline |
| Hexindo Adiperkasa Tbk |
| Astra Graphia Tbk |
Hexindo Adiperkasa and Astra Graphia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexindo Adiperkasa and Astra Graphia
The main advantage of trading using opposite Hexindo Adiperkasa and Astra Graphia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexindo Adiperkasa position performs unexpectedly, Astra Graphia 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 Astra Graphia will offset losses from the drop in Astra Graphia's long position.| Hexindo Adiperkasa vs. Bisi International Tbk | Hexindo Adiperkasa vs. Sampoerna Agro Tbk | Hexindo Adiperkasa vs. Akr Corporindo Tbk | Hexindo Adiperkasa vs. Solusi Bangun Indonesia |
| Astra Graphia vs. Astra Otoparts Tbk | Astra Graphia vs. Citra Marga Nusaphala | Astra Graphia vs. Hexindo Adiperkasa Tbk | Astra Graphia vs. Metrodata Electronics Tbk |
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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