Correlation Between HEXINDO ADIPERKASA and Continental
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA and Continental 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 HEXINDO ADIPERKASA and Continental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and Camden Property Trust, you can compare the effects of market volatilities on HEXINDO ADIPERKASA and Continental 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 HEXINDO ADIPERKASA with a short position of Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and Continental.
Diversification Opportunities for HEXINDO ADIPERKASA and Continental
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HEXINDO and Continental is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA are associated (or correlated) with Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and Continental go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and Continental
If you would invest 10,381 in Camden Property Trust on November 5, 2024 and sell it today you would earn a total of 519.00 from holding Camden Property Trust or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.2% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. Camden Property Trust
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Camden Property Trust |
HEXINDO ADIPERKASA and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and Continental
The main advantage of trading using opposite HEXINDO ADIPERKASA and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental's long position.| HEXINDO ADIPERKASA vs. SWISS WATER DECAFFCOFFEE | HEXINDO ADIPERKASA vs. Coffee Holding Co | HEXINDO ADIPERKASA vs. CHRYSALIS INVESTMENTS LTD | HEXINDO ADIPERKASA vs. New Residential Investment |
| Continental vs. Nippon Steel | Continental vs. ARISTOCRAT LEISURE | Continental vs. MOUNT GIBSON IRON | Continental vs. PLAYWAY SA ZY 10 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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