Correlation Between Hanjaya Mandala and Victoria Investama
Can any of the company-specific risk be diversified away by investing in both Hanjaya Mandala and Victoria Investama 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 Victoria Investama 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 Victoria Investama Tbk, you can compare the effects of market volatilities on Hanjaya Mandala and Victoria Investama 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 Victoria Investama. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjaya Mandala and Victoria Investama.
Diversification Opportunities for Hanjaya Mandala and Victoria Investama
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanjaya and Victoria is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hanjaya Mandala Sampoerna and Victoria Investama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victoria Investama 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 Victoria Investama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victoria Investama Tbk has no effect on the direction of Hanjaya Mandala i.e., Hanjaya Mandala and Victoria Investama go up and down completely randomly.
Pair Corralation between Hanjaya Mandala and Victoria Investama
Assuming the 90 days trading horizon Hanjaya Mandala Sampoerna is expected to generate 0.55 times more return on investment than Victoria Investama. However, Hanjaya Mandala Sampoerna is 1.81 times less risky than Victoria Investama. It trades about -0.29 of its potential returns per unit of risk. Victoria Investama Tbk is currently generating about -0.38 per unit of risk. If you would invest 60,500 in Hanjaya Mandala Sampoerna on November 28, 2024 and sell it today you would lose (4,000) from holding Hanjaya Mandala Sampoerna or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjaya Mandala Sampoerna vs. Victoria Investama Tbk
Performance |
| Timeline |
| Hanjaya Mandala Sampoerna |
| Victoria Investama Tbk |
Hanjaya Mandala and Victoria Investama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjaya Mandala and Victoria Investama
The main advantage of trading using opposite Hanjaya Mandala and Victoria Investama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjaya Mandala position performs unexpectedly, Victoria Investama 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 Victoria Investama will offset losses from the drop in Victoria Investama'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 |
| Victoria Investama vs. Victoria Insurance Tbk | Victoria Investama vs. Verena Multi Finance | Victoria Investama vs. Trimegah Securities Tbk | Victoria Investama vs. Tifa Finance Tbk |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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