Correlation Between PT Indonesia and Hartadinata Abadi
Can any of the company-specific risk be diversified away by investing in both PT Indonesia 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 PT Indonesia and Hartadinata Abadi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Indonesia Kendaraan and Hartadinata Abadi Tbk, you can compare the effects of market volatilities on PT Indonesia 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 PT Indonesia with a short position of Hartadinata Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Indonesia and Hartadinata Abadi.
Diversification Opportunities for PT Indonesia and Hartadinata Abadi
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IPCC and Hartadinata is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PT Indonesia Kendaraan 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 PT Indonesia 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 PT Indonesia Kendaraan 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 PT Indonesia i.e., PT Indonesia and Hartadinata Abadi go up and down completely randomly.
Pair Corralation between PT Indonesia and Hartadinata Abadi
If you would invest 74,500 in PT Indonesia Kendaraan on January 23, 2025 and sell it today you would earn a total of 17,500 from holding PT Indonesia Kendaraan or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 6.67% |
| Values | Daily Returns |
PT Indonesia Kendaraan vs. Hartadinata Abadi Tbk
Performance |
| Timeline |
| PT Indonesia Kendaraan |
| Hartadinata Abadi Tbk |
Risk-Adjusted Performance
Solid
Weak | Strong |
PT Indonesia and Hartadinata Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Indonesia and Hartadinata Abadi
The main advantage of trading using opposite PT Indonesia and Hartadinata Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Indonesia 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.| PT Indonesia vs. Jasa Armada Indonesia | PT Indonesia vs. Mitra Pinasthika Mustika | PT Indonesia vs. Wijaya Karya Bangunan |
| Hartadinata Abadi vs. Steel Pipe Industry | 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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