Correlation Between PT Hexindo and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both PT Hexindo and Advanced Medical 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 Hexindo and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Hexindo Adiperkasa and Advanced Medical Solutions, you can compare the effects of market volatilities on PT Hexindo and Advanced Medical 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 Hexindo with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hexindo and Advanced Medical.
Diversification Opportunities for PT Hexindo and Advanced Medical
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HX1A and Advanced is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding PT Hexindo Adiperkasa and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and PT Hexindo 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 Hexindo Adiperkasa are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of PT Hexindo i.e., PT Hexindo and Advanced Medical go up and down completely randomly.
Pair Corralation between PT Hexindo and Advanced Medical
Assuming the 90 days trading horizon PT Hexindo is expected to generate 1.09 times less return on investment than Advanced Medical. In addition to that, PT Hexindo is 1.95 times more volatile than Advanced Medical Solutions. It trades about 0.01 of its total potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.02 per unit of volatility. If you would invest 238.00 in Advanced Medical Solutions on October 24, 2024 and sell it today you would earn a total of 16.00 from holding Advanced Medical Solutions or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
PT Hexindo Adiperkasa vs. Advanced Medical Solutions
Performance |
| Timeline |
| PT Hexindo Adiperkasa |
| Advanced Medical Sol |
PT Hexindo and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hexindo and Advanced Medical
The main advantage of trading using opposite PT Hexindo and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hexindo position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| PT Hexindo vs. Advanced Medical Solutions | PT Hexindo vs. TOREX SEMICONDUCTOR LTD | PT Hexindo vs. ON SEMICONDUCTOR | PT Hexindo vs. PULSION Medical Systems |
| Advanced Medical vs. TRADELINK ELECTRON | Advanced Medical vs. BJs Restaurants | Advanced Medical vs. SWISS WATER DECAFFCOFFEE | Advanced Medical vs. FAST RETAIL ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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