Correlation Between Humpuss Intermoda and City Retail
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and City Retail 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 City Retail 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 City Retail Developments, you can compare the effects of market volatilities on Humpuss Intermoda and City Retail 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 City Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and City Retail.
Diversification Opportunities for Humpuss Intermoda and City Retail
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Humpuss and City is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and City Retail Developments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Retail Developments 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 City Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Retail Developments has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and City Retail go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and City Retail
Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to generate 6.36 times more return on investment than City Retail. However, Humpuss Intermoda is 6.36 times more volatile than City Retail Developments. It trades about 0.01 of its potential returns per unit of risk. City Retail Developments is currently generating about -0.01 per unit of risk. If you would invest 57,500 in Humpuss Intermoda Transportasi on August 27, 2024 and sell it today you would lose (17,300) from holding Humpuss Intermoda Transportasi or give up 30.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. City Retail Developments
Performance |
| Timeline |
| Humpuss Intermoda |
| City Retail Developments |
Humpuss Intermoda and City Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and City Retail
The main advantage of trading using opposite Humpuss Intermoda and City Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, City Retail 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 City Retail will offset losses from the drop in City Retail's long position.| Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Fortune Mate Indonesia |
| City Retail vs. Metropolitan Land Tbk | City Retail vs. Bekasi Fajar Industrial | City Retail vs. Greenwood Sejahtera Tbk | City Retail vs. Metropolitan Kentjana 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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