Correlation Between HK Metals and Cipta Selera
Can any of the company-specific risk be diversified away by investing in both HK Metals and Cipta Selera 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 Cipta Selera 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 Cipta Selera Murni, you can compare the effects of market volatilities on HK Metals and Cipta Selera 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 Cipta Selera. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Cipta Selera.
Diversification Opportunities for HK Metals and Cipta Selera
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Cipta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Cipta Selera Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cipta Selera Murni 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 Cipta Selera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cipta Selera Murni has no effect on the direction of HK Metals i.e., HK Metals and Cipta Selera go up and down completely randomly.
Pair Corralation between HK Metals and Cipta Selera
If you would invest 303,000 in Cipta Selera Murni on November 3, 2024 and sell it today you would earn a total of 6,000 from holding Cipta Selera Murni or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
HK Metals Utama vs. Cipta Selera Murni
Performance |
| Timeline |
| HK Metals Utama |
| Cipta Selera Murni |
HK Metals and Cipta Selera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Cipta Selera
The main advantage of trading using opposite HK Metals and Cipta Selera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Cipta Selera 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 Cipta Selera will offset losses from the drop in Cipta Selera'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 |
| Cipta Selera vs. Galva Technologies Tbk | Cipta Selera vs. Fast Food Indonesia | Cipta Selera vs. PT Indofood Sukses | Cipta Selera vs. Diamond Food Indonesia |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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