Correlation Between Hanjaya Mandala and Ladangbaja Murni
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Ladangbaja Murni 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 Ladangbaja Murni 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 Ladangbaja Murni PT, you can compare the effects of market volatilities on Hanjaya Mandala and Ladangbaja Murni 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 Ladangbaja Murni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Ladangbaja Murni.
Diversification Opportunities for Hanjaya Mandala and Ladangbaja Murni
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanjaya and Ladangbaja is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Ladangbaja Murni PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladangbaja Murni 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 Ladangbaja Murni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladangbaja Murni has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Ladangbaja Murni go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Ladangbaja Murni
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to generate 0.24 times more return on investment than Ladangbaja Murni. However, Hanjaya Mandala Sampoerna is 4.11 times less risky than Ladangbaja Murni. It trades about -0.23 of its potential returns per unit of risk. Ladangbaja Murni PT is currently generating about -0.27 per unit of risk. If you would invest 69,000 in Hanjaya Mandala Sampoerna on September 1, 2024 and sell it today you would lose (4,000) from holding Hanjaya Mandala Sampoerna or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Ladangbaja Murni PT
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Ladangbaja Murni |
Hanjaya Mandala and Ladangbaja Murni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Ladangbaja Murni
The main advantage of trading using opposite Hanjaya Mandala and Ladangbaja Murni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Ladangbaja Murni 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 Ladangbaja Murni will offset losses from the drop in Ladangbaja Murni'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 |
| Ladangbaja Murni vs. PAM Mineral Tbk | Ladangbaja Murni vs. Nusa Palapa Gemilang | Ladangbaja Murni vs. Diagnos Laboratorium Utama | Ladangbaja Murni vs. PT Sunter Lakeside |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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