Correlation Between HEXINDO ADIPERKASA and Apple
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and Apple Inc, you can compare the effects of market volatilities on HEXINDO ADIPERKASA and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and Apple.
Diversification Opportunities for HEXINDO ADIPERKASA and Apple
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HEXINDO and Apple is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and Apple go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and Apple
Assuming the 90 days trading horizon HEXINDO ADIPERKASA is expected to under-perform the Apple. In addition to that, HEXINDO ADIPERKASA is 2.83 times more volatile than Apple Inc. It trades about -0.37 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.09 per unit of volatility. If you would invest 21,604 in Apple Inc on August 27, 2024 and sell it today you would earn a total of 526.00 from holding Apple Inc or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. Apple Inc
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
| Apple Inc |
HEXINDO ADIPERKASA and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and Apple
The main advantage of trading using opposite HEXINDO ADIPERKASA and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Apple Inc | HEXINDO ADIPERKASA vs. Microsoft |
| Apple vs. FAST RETAIL ADR | Apple vs. MCEWEN MINING INC | Apple vs. Playtech plc | Apple vs. Caseys General Stores |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |