Correlation Between HEXINDO ADIPERKASA and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA and SHIP HEALTHCARE 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 SHIP HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on HEXINDO ADIPERKASA and SHIP HEALTHCARE 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 SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and SHIP HEALTHCARE.
Diversification Opportunities for HEXINDO ADIPERKASA and SHIP HEALTHCARE
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HEXINDO and SHIP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and SHIP HEALTHCARE
Assuming the 90 days trading horizon HEXINDO ADIPERKASA is expected to under-perform the SHIP HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, HEXINDO ADIPERKASA is 1.06 times less risky than SHIP HEALTHCARE. The stock trades about -0.35 of its potential returns per unit of risk. The SHIP HEALTHCARE HLDGINC is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,360 in SHIP HEALTHCARE HLDGINC on August 30, 2024 and sell it today you would lose (30.00) from holding SHIP HEALTHCARE HLDGINC or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
| SHIP HEALTHCARE HLDGINC |
HEXINDO ADIPERKASA and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and SHIP HEALTHCARE
The main advantage of trading using opposite HEXINDO ADIPERKASA and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Superior Plus Corp | HEXINDO ADIPERKASA vs. SIVERS SEMICONDUCTORS AB |
| SHIP HEALTHCARE vs. Becton Dickinson and | SHIP HEALTHCARE vs. HOYA Corporation | SHIP HEALTHCARE vs. Superior Plus Corp | SHIP HEALTHCARE vs. NMI Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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