Correlation Between Humpuss Intermoda and Pertamina Geothermal
Can any of the company-specific risk be diversified away by investing in both Humpuss Intermoda and Pertamina Geothermal 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 Pertamina Geothermal 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 Pertamina Geothermal Energy, you can compare the effects of market volatilities on Humpuss Intermoda and Pertamina Geothermal 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 Pertamina Geothermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humpuss Intermoda and Pertamina Geothermal.
Diversification Opportunities for Humpuss Intermoda and Pertamina Geothermal
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Humpuss and Pertamina is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Humpuss Intermoda Transportasi and Pertamina Geothermal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pertamina Geothermal 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 Pertamina Geothermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pertamina Geothermal has no effect on the direction of Humpuss Intermoda i.e., Humpuss Intermoda and Pertamina Geothermal go up and down completely randomly.
Pair Corralation between Humpuss Intermoda and Pertamina Geothermal
Assuming the 90 days trading horizon Humpuss Intermoda Transportasi is expected to under-perform the Pertamina Geothermal. In addition to that, Humpuss Intermoda is 3.16 times more volatile than Pertamina Geothermal Energy. It trades about -0.18 of its total potential returns per unit of risk. Pertamina Geothermal Energy is currently generating about -0.22 per unit of volatility. If you would invest 96,000 in Pertamina Geothermal Energy on October 23, 2024 and sell it today you would lose (4,000) from holding Pertamina Geothermal Energy or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humpuss Intermoda Transportasi vs. Pertamina Geothermal Energy
Performance |
| Timeline |
| Humpuss Intermoda |
| Pertamina Geothermal |
Humpuss Intermoda and Pertamina Geothermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humpuss Intermoda and Pertamina Geothermal
The main advantage of trading using opposite Humpuss Intermoda and Pertamina Geothermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humpuss Intermoda position performs unexpectedly, Pertamina Geothermal 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 Pertamina Geothermal will offset losses from the drop in Pertamina Geothermal'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 |
| Pertamina Geothermal vs. Metrodata Electronics Tbk | Pertamina Geothermal vs. Garuda Metalindo Tbk | Pertamina Geothermal vs. Indorama Synthetics Tbk | Pertamina Geothermal vs. First Media 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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