Correlation Between Hanjaya Mandala and Ristia Bintang
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Ristia Bintang 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 Ristia Bintang 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 Ristia Bintang Mahkotasejati, you can compare the effects of market volatilities on Hanjaya Mandala and Ristia Bintang 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 Ristia Bintang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Ristia Bintang.
Diversification Opportunities for Hanjaya Mandala and Ristia Bintang
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanjaya and Ristia is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Ristia Bintang Mahkotasejati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ristia Bintang Mahko 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 Ristia Bintang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ristia Bintang Mahko has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Ristia Bintang go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Ristia Bintang
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to under-perform the Ristia Bintang. But the stock apears to be less risky and, when comparing its historical volatility, Hanjaya Mandala Sampoerna is 2.48 times less risky than Ristia Bintang. The stock trades about -0.23 of its potential returns per unit of risk. The Ristia Bintang Mahkotasejati is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Ristia Bintang Mahkotasejati on November 4, 2024 and sell it today you would earn a total of 200.00 from holding Ristia Bintang Mahkotasejati or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Ristia Bintang Mahkotasejati
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Ristia Bintang Mahko |
Hanjaya Mandala and Ristia Bintang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Ristia Bintang
The main advantage of trading using opposite Hanjaya Mandala and Ristia Bintang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Ristia Bintang 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 Ristia Bintang will offset losses from the drop in Ristia Bintang'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 |
| Ristia Bintang vs. HK Metals Utama | Ristia Bintang vs. PT Bank Bisnis | Ristia Bintang vs. Metrodata Electronics Tbk | Ristia Bintang vs. Optima Prima Metal |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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