Correlation Between Hanjaya Mandala and PT Jhonlin
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and PT Jhonlin 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 Jhonlin 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 Jhonlin Agro, you can compare the effects of market volatilities on Hanjaya Mandala and PT Jhonlin 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 Jhonlin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and PT Jhonlin.
Diversification Opportunities for Hanjaya Mandala and PT Jhonlin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanjaya and JARR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and PT Jhonlin Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jhonlin Agro 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 Jhonlin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jhonlin Agro has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and PT Jhonlin go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and PT Jhonlin
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to generate 0.23 times more return on investment than PT Jhonlin. However, Hanjaya Mandala Sampoerna is 4.27 times less risky than PT Jhonlin. It trades about -0.26 of its potential returns per unit of risk. PT Jhonlin Agro is currently generating about -0.25 per unit of risk. If you would invest 70,500 in Hanjaya Mandala Sampoerna on August 24, 2024 and sell it today you would lose (5,000) from holding Hanjaya Mandala Sampoerna or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. PT Jhonlin Agro
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| PT Jhonlin Agro |
Hanjaya Mandala and PT Jhonlin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and PT Jhonlin
The main advantage of trading using opposite Hanjaya Mandala and PT Jhonlin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, PT Jhonlin 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 Jhonlin will offset losses from the drop in PT Jhonlin's long position.| Hanjaya Mandala vs. Unilever Indonesia Tbk | Hanjaya Mandala vs. PT Indofood Sukses | Hanjaya Mandala vs. Astra International Tbk | Hanjaya Mandala vs. Telkom Indonesia Tbk |
| PT Jhonlin vs. PT Dewi Shri | PT Jhonlin vs. Habco Trans Maritima | PT Jhonlin vs. PT Cilacap Samudera | PT Jhonlin vs. PT Sari Kreasi |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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