Correlation Between HK Metals and Ristia Bintang
Can any of the company-specific risk be diversified away by investing in both HK Metals and Ristia Bintang 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 Ristia Bintang 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 Ristia Bintang Mahkotasejati, you can compare the effects of market volatilities on HK Metals and Ristia Bintang 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 Ristia Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Ristia Bintang.
Diversification Opportunities for HK Metals and Ristia Bintang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Ristia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Ristia Bintang Mahkotasejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ristia Bintang Mahko 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 Ristia Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ristia Bintang Mahko has no effect on the direction of HK Metals i.e., HK Metals and Ristia Bintang go up and down completely randomly.
Pair Corralation between HK Metals and Ristia Bintang
If you would invest 3,000 in Ristia Bintang Mahkotasejati on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Ristia Bintang Mahkotasejati or generate 3.33% 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. Ristia Bintang Mahkotasejati
Performance |
| Timeline |
| HK Metals Utama |
| Ristia Bintang Mahko |
HK Metals and Ristia Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and Ristia Bintang
The main advantage of trading using opposite HK Metals and Ristia Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Ristia Bintang 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 Ristia Bintang will offset losses from the drop in Ristia Bintang'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 |
| Ristia Bintang vs. Hoffmen Cleanindo | Ristia Bintang vs. HK Metals Utama | Ristia Bintang vs. Metrodata Electronics Tbk | Ristia Bintang vs. Wintermar Offshore Marine |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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