Correlation Between HK Metals and Alumindo Light
Can any of the company-specific risk be diversified away by investing in both HK Metals and Alumindo Light 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 HK Metals and Alumindo Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Metals Utama and Alumindo Light Metal, you can compare the effects of market volatilities on HK Metals and Alumindo Light 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 HK Metals with a short position of Alumindo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Alumindo Light.
Diversification Opportunities for HK Metals and Alumindo Light
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Alumindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Alumindo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumindo Light Metal and HK Metals 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 HK Metals Utama are associated (or correlated) with Alumindo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumindo Light Metal has no effect on the direction of HK Metals i.e., HK Metals and Alumindo Light go up and down completely randomly.
Pair Corralation between HK Metals and Alumindo Light
If you would invest 5,000 in HK Metals Utama on September 2, 2024 and sell it today you would earn a total of 0.00 from holding HK Metals Utama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HK Metals Utama vs. Alumindo Light Metal
Performance |
| Timeline |
| HK Metals Utama |
| Alumindo Light Metal |
HK Metals and Alumindo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Alumindo Light
The main advantage of trading using opposite HK Metals and Alumindo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Alumindo Light 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 Alumindo Light will offset losses from the drop in Alumindo Light's long position.| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
| Alumindo Light vs. Perusahaan Gas Negara | Alumindo Light vs. Telkom Indonesia Tbk | Alumindo Light vs. Mitra Pinasthika Mustika | Alumindo Light 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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