Correlation Between Humpuss Intermoda and PT MNC
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and PT MNC 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 PT MNC 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 PT MNC Energy, you can compare the effects of market volatilities on Humpuss Intermoda and PT MNC 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 PT MNC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and PT MNC.
Diversification Opportunities for Humpuss Intermoda and PT MNC
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humpuss and IATA is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and PT MNC Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT MNC Energy 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 PT MNC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT MNC Energy has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and PT MNC go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and PT MNC
Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to generate 1.9 times more return on investment than PT MNC. However, Humpuss Intermoda is 1.9 times more volatile than PT MNC Energy. It trades about 0.24 of its potential returns per unit of risk. PT MNC Energy is currently generating about 0.24 per unit of risk. If you would invest 32,600 in Humpuss Intermoda Transportasi on September 2, 2024 and sell it today you would earn a total of 10,000 from holding Humpuss Intermoda Transportasi or generate 30.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. PT MNC Energy
Performance |
| Timeline |
| Humpuss Intermoda |
| PT MNC Energy |
Humpuss Intermoda and PT MNC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and PT MNC
The main advantage of trading using opposite Humpuss Intermoda and PT MNC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, PT MNC 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 MNC will offset losses from the drop in PT MNC's long position.| Humpuss Intermoda vs. Mitrabahtera Segara Sejati | Humpuss Intermoda vs. Weha Transportasi Indonesia | Humpuss Intermoda vs. Rig Tenders Tbk |
| PT MNC vs. Matahari Department Store | PT MNC vs. Multi Medika Internasional | PT MNC vs. Visi Media Asia | PT MNC vs. Bayan Resources 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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