Correlation Between PT Hexindo and Infosys
Can any of the company-specific risk be diversified away by investing in both PT Hexindo and Infosys 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 Infosys 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 Infosys Limited, you can compare the effects of market volatilities on PT Hexindo and Infosys 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 Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hexindo and Infosys.
Diversification Opportunities for PT Hexindo and Infosys
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HX1A and Infosys is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Hexindo Adiperkasa and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys Limited 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 Infosys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infosys Limited has no effect on the direction of PT Hexindo i.e., PT Hexindo and Infosys go up and down completely randomly.
Pair Corralation between PT Hexindo and Infosys
Assuming the 90 days trading horizon PT Hexindo Adiperkasa is expected to under-perform the Infosys. In addition to that, PT Hexindo is 1.16 times more volatile than Infosys Limited. It trades about -0.04 of its total potential returns per unit of risk. Infosys Limited is currently generating about 0.07 per unit of volatility. If you would invest 2,100 in Infosys Limited on September 24, 2024 and sell it today you would earn a total of 80.00 from holding Infosys Limited or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hexindo Adiperkasa vs. Infosys Limited
Performance |
| Timeline |
| PT Hexindo Adiperkasa |
| Infosys Limited |
PT Hexindo and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hexindo and Infosys
The main advantage of trading using opposite PT Hexindo and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hexindo position performs unexpectedly, Infosys 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 Infosys will offset losses from the drop in Infosys' long position.| PT Hexindo vs. Ashtead Group plc | PT Hexindo vs. WillScot Mobile Mini | PT Hexindo vs. Avis Budget Group | PT Hexindo vs. Sixt SE |
| Infosys vs. Accenture plc | Infosys vs. International Business Machines | Infosys vs. Cognizant Technology Solutions | Infosys vs. AMADEUS IT GRP |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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