Correlation Between Hoffmen Cleanindo and Era Media
Can any of the company-specific risk be diversified away by investing in both Hoffmen Cleanindo and Era Media 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 Hoffmen Cleanindo and Era Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoffmen Cleanindo and Era Media Sejahtera, you can compare the effects of market volatilities on Hoffmen Cleanindo and Era Media 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 Hoffmen Cleanindo with a short position of Era Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoffmen Cleanindo and Era Media.
Diversification Opportunities for Hoffmen Cleanindo and Era Media
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hoffmen and Era is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hoffmen Cleanindo and Era Media Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Media Sejahtera and Hoffmen Cleanindo 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 Hoffmen Cleanindo are associated (or correlated) with Era Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Media Sejahtera has no effect on the direction of Hoffmen Cleanindo i.e., Hoffmen Cleanindo and Era Media go up and down completely randomly.
Pair Corralation between Hoffmen Cleanindo and Era Media
Assuming the 90 days trading horizon Hoffmen Cleanindo is expected to under-perform the Era Media. But the stock apears to be less risky and, when comparing its historical volatility, Hoffmen Cleanindo is 1.4 times less risky than Era Media. The stock trades about -0.01 of its potential returns per unit of risk. The Era Media Sejahtera is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,700 in Era Media Sejahtera on August 27, 2024 and sell it today you would lose (200.00) from holding Era Media Sejahtera or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoffmen Cleanindo vs. Era Media Sejahtera
Performance |
| Timeline |
| Hoffmen Cleanindo |
| Era Media Sejahtera |
Hoffmen Cleanindo and Era Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoffmen Cleanindo and Era Media
The main advantage of trading using opposite Hoffmen Cleanindo and Era Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoffmen Cleanindo position performs unexpectedly, Era Media 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 Era Media will offset losses from the drop in Era Media's long position.| Hoffmen Cleanindo vs. Bank Central Asia | Hoffmen Cleanindo vs. Bank Rakyat Indonesia | Hoffmen Cleanindo vs. Bayan Resources Tbk | Hoffmen Cleanindo vs. Bank Mandiri Persero |
| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |