Correlation Between Humpuss Intermoda and Ashmore Asset
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and Ashmore Asset 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 Humpuss Intermoda and Ashmore Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humpuss Intermoda Transportasi and Ashmore Asset Management, you can compare the effects of market volatilities on Humpuss Intermoda and Ashmore Asset 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 Humpuss Intermoda with a short position of Ashmore Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and Ashmore Asset.
Diversification Opportunities for Humpuss Intermoda and Ashmore Asset
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Humpuss and Ashmore is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and Ashmore Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Asset Management and Humpuss Intermoda 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 Humpuss Intermoda Transportasi are associated (or correlated) with Ashmore Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Asset Management has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and Ashmore Asset go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and Ashmore Asset
Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to generate 1.34 times more return on investment than Ashmore Asset. However, Humpuss Intermoda is 1.34 times more volatile than Ashmore Asset Management. It trades about 0.1 of its potential returns per unit of risk. Ashmore Asset Management is currently generating about -0.31 per unit of risk. If you would invest 40,600 in Humpuss Intermoda Transportasi on September 3, 2024 and sell it today you would earn a total of 2,000 from holding Humpuss Intermoda Transportasi or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. Ashmore Asset Management
Performance |
| Timeline |
| Humpuss Intermoda |
| Ashmore Asset Management |
Humpuss Intermoda and Ashmore Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and Ashmore Asset
The main advantage of trading using opposite Humpuss Intermoda and Ashmore Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, Ashmore Asset 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 Ashmore Asset will offset losses from the drop in Ashmore Asset's long position.| Humpuss Intermoda vs. Weha Transportasi Indonesia | Humpuss Intermoda vs. Mitra Pinasthika Mustika | Humpuss Intermoda vs. Jakarta Int Hotels | Humpuss Intermoda vs. Asuransi Harta Aman |
| Ashmore Asset vs. Bank Amar Indonesia | Ashmore Asset vs. Bhakti Multi Artha | Ashmore Asset vs. Mitra Pinasthika Mustika | Ashmore Asset vs. Jakarta Int Hotels |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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