Correlation Between HEXINDO ADIPERKASA and Natural Health
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA and Natural Health 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 Natural Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and Natural Health Trends, you can compare the effects of market volatilities on HEXINDO ADIPERKASA and Natural Health 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 Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and Natural Health.
Diversification Opportunities for HEXINDO ADIPERKASA and Natural Health
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between HEXINDO and Natural is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends 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 Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and Natural Health go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and Natural Health
Assuming the 90 days trading horizon HEXINDO ADIPERKASA is expected to under-perform the Natural Health. But the stock apears to be less risky and, when comparing its historical volatility, HEXINDO ADIPERKASA is 1.56 times less risky than Natural Health. The stock trades about -0.01 of its potential returns per unit of risk. The Natural Health Trends is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 393.00 in Natural Health Trends on September 12, 2024 and sell it today you would earn a total of 51.00 from holding Natural Health Trends or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. Natural Health Trends
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
| Natural Health Trends |
HEXINDO ADIPERKASA and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and Natural Health
The main advantage of trading using opposite HEXINDO ADIPERKASA and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc |
| Natural Health vs. Lendlease Group | Natural Health vs. FUYO GENERAL LEASE | Natural Health vs. Ares Management Corp | Natural Health vs. INVITATION HOMES DL |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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