Correlation Between PT Harapan and Diagnos Laboratorium
Can any of the company-specific risk be diversified away by investing in both PT Harapan and Diagnos Laboratorium 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 Diagnos Laboratorium 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 Diagnos Laboratorium Utama, you can compare the effects of market volatilities on PT Harapan and Diagnos Laboratorium 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 Diagnos Laboratorium. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Harapan and Diagnos Laboratorium.
Diversification Opportunities for PT Harapan and Diagnos Laboratorium
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOPE and Diagnos is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Harapan Duta and Diagnos Laboratorium Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diagnos Laboratorium 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 Diagnos Laboratorium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diagnos Laboratorium has no effect on the direction of PT Harapan i.e., PT Harapan and Diagnos Laboratorium go up and down completely randomly.
Pair Corralation between PT Harapan and Diagnos Laboratorium
Assuming the 90 days trading horizon PT Harapan Duta is expected to under-perform the Diagnos Laboratorium. In addition to that, PT Harapan is 1.19 times more volatile than Diagnos Laboratorium Utama. It trades about -0.01 of its total potential returns per unit of risk. Diagnos Laboratorium Utama is currently generating about -0.01 per unit of volatility. If you would invest 28,400 in Diagnos Laboratorium Utama on September 1, 2024 and sell it today you would lose (6,400) from holding Diagnos Laboratorium Utama or give up 22.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Harapan Duta vs. Diagnos Laboratorium Utama
Performance |
| Timeline |
| PT Harapan Duta |
| Diagnos Laboratorium |
PT Harapan and Diagnos Laboratorium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Harapan and Diagnos Laboratorium
The main advantage of trading using opposite PT Harapan and Diagnos Laboratorium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Harapan position performs unexpectedly, Diagnos Laboratorium 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 Diagnos Laboratorium will offset losses from the drop in Diagnos Laboratorium'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 |
| Diagnos Laboratorium vs. Prodia Widyahusada Tbk | Diagnos Laboratorium vs. Medikaloka Hermina PT | Diagnos Laboratorium vs. Itama Ranoraya | Diagnos Laboratorium vs. Digital Mediatama Maxima |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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