Correlation Between Intanwijaya Internasional and Hartadinata Abadi
Can any of the company-specific risk be diversified away by investing in both Intanwijaya Internasional and Hartadinata Abadi 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 Intanwijaya Internasional and Hartadinata Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intanwijaya Internasional Tbk and Hartadinata Abadi Tbk, you can compare the effects of market volatilities on Intanwijaya Internasional and Hartadinata Abadi 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 Intanwijaya Internasional with a short position of Hartadinata Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intanwijaya Internasional and Hartadinata Abadi.
Diversification Opportunities for Intanwijaya Internasional and Hartadinata Abadi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intanwijaya and Hartadinata is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intanwijaya Internasional Tbk and Hartadinata Abadi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartadinata Abadi Tbk and Intanwijaya Internasional 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 Intanwijaya Internasional Tbk are associated (or correlated) with Hartadinata Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartadinata Abadi Tbk has no effect on the direction of Intanwijaya Internasional i.e., Intanwijaya Internasional and Hartadinata Abadi go up and down completely randomly.
Pair Corralation between Intanwijaya Internasional and Hartadinata Abadi
Assuming the 90 days trading horizon Intanwijaya Internasional Tbk is expected to generate 0.69 times more return on investment than Hartadinata Abadi. However, Intanwijaya Internasional Tbk is 1.45 times less risky than Hartadinata Abadi. It trades about -0.12 of its potential returns per unit of risk. Hartadinata Abadi Tbk is currently generating about -0.45 per unit of risk. If you would invest 60,000 in Intanwijaya Internasional Tbk on August 28, 2024 and sell it today you would lose (2,500) from holding Intanwijaya Internasional Tbk or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intanwijaya Internasional Tbk vs. Hartadinata Abadi Tbk
Performance |
| Timeline |
| Intanwijaya Internasional |
| Hartadinata Abadi Tbk |
Intanwijaya Internasional and Hartadinata Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intanwijaya Internasional and Hartadinata Abadi
The main advantage of trading using opposite Intanwijaya Internasional and Hartadinata Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intanwijaya Internasional position performs unexpectedly, Hartadinata Abadi 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 Hartadinata Abadi will offset losses from the drop in Hartadinata Abadi's long position.| Intanwijaya Internasional vs. Kedaung Indah Can | Intanwijaya Internasional vs. Langgeng Makmur Industri | Intanwijaya Internasional vs. Kabelindo Murni Tbk | Intanwijaya Internasional vs. Mustika Ratu Tbk |
| Hartadinata Abadi vs. Steel Pipe Industry | Hartadinata Abadi vs. Puradelta Lestari PT | Hartadinata Abadi vs. Jasa Armada Indonesia | Hartadinata Abadi vs. Integra Indocabinet Tbk |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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