Correlation Between Hanjaya Mandala and PT Janu
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and PT Janu 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 Hanjaya Mandala and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjaya Mandala Sampoerna and PT Janu Putra, you can compare the effects of market volatilities on Hanjaya Mandala and PT Janu 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 Hanjaya Mandala with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and PT Janu.
Diversification Opportunities for Hanjaya Mandala and PT Janu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanjaya and AYAM is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra and Hanjaya Mandala 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 Hanjaya Mandala Sampoerna are associated (or correlated) with PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and PT Janu go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and PT Janu
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to under-perform the PT Janu. But the stock apears to be less risky and, when comparing its historical volatility, Hanjaya Mandala Sampoerna is 1.29 times less risky than PT Janu. The stock trades about -0.29 of its potential returns per unit of risk. The PT Janu Putra is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 14,100 in PT Janu Putra on November 28, 2024 and sell it today you would earn a total of 700.00 from holding PT Janu Putra or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. PT Janu Putra
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| PT Janu Putra |
Hanjaya Mandala and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and PT Janu
The main advantage of trading using opposite Hanjaya Mandala and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, PT Janu 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 Janu will offset losses from the drop in PT Janu's long position.| Hanjaya Mandala vs. Gudang Garam Tbk | Hanjaya Mandala vs. Unilever Indonesia Tbk | Hanjaya Mandala vs. Indofood Cbp Sukses | Hanjaya Mandala vs. PT Indofood Sukses |
| PT Janu vs. PT Hetzer Medical | PT Janu vs. City Retail Developments | PT Janu vs. Smartfren Telecom Tbk | PT Janu vs. Lotte Chemical Titan |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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