Correlation Between HK Metals and PT Winner
Can any of the company-specific risk be diversified away by investing in both HK Metals and PT Winner 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 PT Winner 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 PT Winner Nusantara, you can compare the effects of market volatilities on HK Metals and PT Winner 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 PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and PT Winner.
Diversification Opportunities for HK Metals and PT Winner
Pay attention - limited upside
The 3 months correlation between HKMU and WINR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of HK Metals i.e., HK Metals and PT Winner go up and down completely randomly.
Pair Corralation between HK Metals and PT Winner
If you would invest 5,000 in HK Metals Utama on September 12, 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 | 99.72% |
| Values | Daily Returns |
HK Metals Utama vs. PT Winner Nusantara
Performance |
| Timeline |
| HK Metals Utama |
| PT Winner Nusantara |
HK Metals and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HK Metals and PT Winner
The main advantage of trading using opposite HK Metals and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, PT Winner 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 PT Winner will offset losses from the drop in PT Winner'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 |
| PT Winner vs. Weha Transportasi Indonesia | PT Winner vs. Protech Mitra Perkasa | PT Winner vs. Communication Cable Systems | PT Winner vs. Media Nusantara Citra |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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