Correlation Between HK Metals and Pertamina Geothermal
Can any of the company-specific risk be diversified away by investing in both HK Metals and Pertamina Geothermal 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 Pertamina Geothermal 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 Pertamina Geothermal Energy, you can compare the effects of market volatilities on HK Metals and Pertamina Geothermal 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 Pertamina Geothermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Pertamina Geothermal.
Diversification Opportunities for HK Metals and Pertamina Geothermal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Pertamina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Pertamina Geothermal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pertamina Geothermal 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 Pertamina Geothermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pertamina Geothermal has no effect on the direction of HK Metals i.e., HK Metals and Pertamina Geothermal go up and down completely randomly.
Pair Corralation between HK Metals and Pertamina Geothermal
If you would invest 5,000 in HK Metals Utama on September 1, 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. Pertamina Geothermal Energy
Performance |
| Timeline |
| HK Metals Utama |
| Pertamina Geothermal |
HK Metals and Pertamina Geothermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Pertamina Geothermal
The main advantage of trading using opposite HK Metals and Pertamina Geothermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Pertamina Geothermal 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 Pertamina Geothermal will offset losses from the drop in Pertamina Geothermal'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 |
| Pertamina Geothermal vs. Ashmore Asset Management | Pertamina Geothermal vs. HK Metals Utama | Pertamina Geothermal vs. Lotte Chemical Titan | Pertamina Geothermal 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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