Correlation Between HK Metals and PT Multitrend
Can any of the company-specific risk be diversified away by investing in both HK Metals and PT Multitrend 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 PT Multitrend 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 PT Multitrend Indo, you can compare the effects of market volatilities on HK Metals and PT Multitrend 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 PT Multitrend. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and PT Multitrend.
Diversification Opportunities for HK Metals and PT Multitrend
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and BABY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and PT Multitrend Indo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Multitrend Indo 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 PT Multitrend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Multitrend Indo has no effect on the direction of HK Metals i.e., HK Metals and PT Multitrend go up and down completely randomly.
Pair Corralation between HK Metals and PT Multitrend
If you would invest 26,400 in PT Multitrend Indo on August 30, 2024 and sell it today you would earn a total of 4,000 from holding PT Multitrend Indo or generate 15.15% 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. PT Multitrend Indo
Performance |
| Timeline |
| HK Metals Utama |
| PT Multitrend Indo |
HK Metals and PT Multitrend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and PT Multitrend
The main advantage of trading using opposite HK Metals and PT Multitrend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, PT Multitrend 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 Multitrend will offset losses from the drop in PT Multitrend'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 |
| PT Multitrend vs. Metro Healthcare Indonesia | PT Multitrend vs. Indofood Cbp Sukses | PT Multitrend vs. PT UBC Medical | PT Multitrend vs. Hoffmen Cleanindo |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |