Correlation Between Hanjaya Mandala and Vastland Indonesia
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Vastland Indonesia 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 Vastland Indonesia 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 Vastland Indonesia, you can compare the effects of market volatilities on Hanjaya Mandala and Vastland Indonesia 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 Vastland Indonesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Vastland Indonesia.
Diversification Opportunities for Hanjaya Mandala and Vastland Indonesia
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanjaya and Vastland is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Vastland Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastland Indonesia 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 Vastland Indonesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastland Indonesia has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Vastland Indonesia go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Vastland Indonesia
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to under-perform the Vastland Indonesia. But the stock apears to be less risky and, when comparing its historical volatility, Hanjaya Mandala Sampoerna is 2.49 times less risky than Vastland Indonesia. The stock trades about -0.18 of its potential returns per unit of risk. The Vastland Indonesia is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,100 in Vastland Indonesia on September 2, 2024 and sell it today you would earn a total of 500.00 from holding Vastland Indonesia or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Vastland Indonesia
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Vastland Indonesia |
Hanjaya Mandala and Vastland Indonesia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Vastland Indonesia
The main advantage of trading using opposite Hanjaya Mandala and Vastland Indonesia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Vastland Indonesia 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 Vastland Indonesia will offset losses from the drop in Vastland Indonesia'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 |
| Vastland Indonesia vs. Bank Central Asia | Vastland Indonesia vs. Bank Rakyat Indonesia | Vastland Indonesia vs. Bayan Resources Tbk | Vastland Indonesia vs. Bank Mandiri Persero |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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