Correlation Between HK Metals and Intermedia Capital
Can any of the company-specific risk be diversified away by investing in both HK Metals and Intermedia Capital 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 Intermedia Capital 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 Intermedia Capital Tbk, you can compare the effects of market volatilities on HK Metals and Intermedia Capital 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 Intermedia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Intermedia Capital.
Diversification Opportunities for HK Metals and Intermedia Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Intermedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Intermedia Capital Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedia Capital Tbk 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 Intermedia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedia Capital Tbk has no effect on the direction of HK Metals i.e., HK Metals and Intermedia Capital go up and down completely randomly.
Pair Corralation between HK Metals and Intermedia Capital
If you would invest 5,000 in HK Metals Utama on August 31, 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 | 99.78% |
| Values | Daily Returns |
HK Metals Utama vs. Intermedia Capital Tbk
Performance |
| Timeline |
| HK Metals Utama |
| Intermedia Capital Tbk |
HK Metals and Intermedia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Intermedia Capital
The main advantage of trading using opposite HK Metals and Intermedia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Intermedia Capital 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 Intermedia Capital will offset losses from the drop in Intermedia Capital'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 |
| Intermedia Capital vs. Indosat Tbk | Intermedia Capital vs. XL Axiata Tbk | Intermedia Capital vs. Energi Mega Persada | Intermedia Capital vs. Bakrie Brothers 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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