Correlation Between Hanjaya Mandala and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Paninvest Tbk 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 Paninvest Tbk 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 Paninvest Tbk, you can compare the effects of market volatilities on Hanjaya Mandala and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Paninvest Tbk.
Diversification Opportunities for Hanjaya Mandala and Paninvest Tbk
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanjaya and Paninvest is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Paninvest Tbk
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to under-perform the Paninvest Tbk. But the stock apears to be less risky and, when comparing its historical volatility, Hanjaya Mandala Sampoerna is 1.47 times less risky than Paninvest Tbk. The stock trades about -0.23 of its potential returns per unit of risk. The Paninvest Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 103,500 in Paninvest Tbk on November 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Paninvest Tbk or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Paninvest Tbk
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Paninvest Tbk |
Hanjaya Mandala and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Paninvest Tbk
The main advantage of trading using opposite Hanjaya Mandala and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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