Correlation Between HK Metals and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both HK Metals and Sanurhasta Mitra 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 Sanurhasta Mitra 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 Sanurhasta Mitra PT, you can compare the effects of market volatilities on HK Metals and Sanurhasta Mitra 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 Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Sanurhasta Mitra.
Diversification Opportunities for HK Metals and Sanurhasta Mitra
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Sanurhasta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra 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 Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of HK Metals i.e., HK Metals and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between HK Metals and Sanurhasta Mitra
If you would invest 2,300 in Sanurhasta Mitra PT on September 1, 2024 and sell it today you would earn a total of 1,100 from holding Sanurhasta Mitra PT or generate 47.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HK Metals Utama vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| HK Metals Utama |
| Sanurhasta Mitra |
HK Metals and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Sanurhasta Mitra
The main advantage of trading using opposite HK Metals and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra's long position.| HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. J Resources Asia | HK Metals vs. Steel Pipe Industry |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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