Correlation Between PT Harapan and Cahayaputra Asa
Can any of the company-specific risk be diversified away by investing in both PT Harapan and Cahayaputra Asa 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 PT Harapan and Cahayaputra Asa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Harapan Duta and Cahayaputra Asa Keramik, you can compare the effects of market volatilities on PT Harapan and Cahayaputra Asa 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 PT Harapan with a short position of Cahayaputra Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Harapan and Cahayaputra Asa.
Diversification Opportunities for PT Harapan and Cahayaputra Asa
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HOPE and Cahayaputra is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PT Harapan Duta and Cahayaputra Asa Keramik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cahayaputra Asa Keramik and PT Harapan 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 PT Harapan Duta are associated (or correlated) with Cahayaputra Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cahayaputra Asa Keramik has no effect on the direction of PT Harapan i.e., PT Harapan and Cahayaputra Asa go up and down completely randomly.
Pair Corralation between PT Harapan and Cahayaputra Asa
Assuming the 90 days trading horizon PT Harapan Duta is expected to generate 1.09 times more return on investment than Cahayaputra Asa. However, PT Harapan is 1.09 times more volatile than Cahayaputra Asa Keramik. It trades about -0.01 of its potential returns per unit of risk. Cahayaputra Asa Keramik is currently generating about -0.01 per unit of risk. If you would invest 5,300 in PT Harapan Duta on September 4, 2024 and sell it today you would lose (2,000) from holding PT Harapan Duta or give up 37.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Harapan Duta vs. Cahayaputra Asa Keramik
Performance |
| Timeline |
| PT Harapan Duta |
| Cahayaputra Asa Keramik |
PT Harapan and Cahayaputra Asa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Harapan and Cahayaputra Asa
The main advantage of trading using opposite PT Harapan and Cahayaputra Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Harapan position performs unexpectedly, Cahayaputra Asa 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 Cahayaputra Asa will offset losses from the drop in Cahayaputra Asa's long position.| PT Harapan vs. Ladangbaja Murni PT | PT Harapan vs. Berkah Beton Sadaya | PT Harapan vs. Cahayaputra Asa Keramik | PT Harapan vs. Diagnos Laboratorium Utama |
| Cahayaputra Asa vs. PT Indonesia Kendaraan | Cahayaputra Asa vs. Wijaya Karya Bangunan | Cahayaputra Asa vs. Buyung Poetra Sembada | Cahayaputra Asa vs. J Resources Asia |
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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