Correlation Between Grand Kartech and Hoffmen Cleanindo
Can any of the company-specific risk be diversified away by investing in both Grand Kartech and Hoffmen Cleanindo 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 Grand Kartech and Hoffmen Cleanindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Kartech Tbk and Hoffmen Cleanindo, you can compare the effects of market volatilities on Grand Kartech and Hoffmen Cleanindo 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 Grand Kartech with a short position of Hoffmen Cleanindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Kartech and Hoffmen Cleanindo.
Diversification Opportunities for Grand Kartech and Hoffmen Cleanindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grand and Hoffmen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grand Kartech Tbk and Hoffmen Cleanindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoffmen Cleanindo and Grand Kartech 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 Grand Kartech Tbk are associated (or correlated) with Hoffmen Cleanindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoffmen Cleanindo has no effect on the direction of Grand Kartech i.e., Grand Kartech and Hoffmen Cleanindo go up and down completely randomly.
Pair Corralation between Grand Kartech and Hoffmen Cleanindo
If you would invest 43,600 in Grand Kartech Tbk on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Grand Kartech Tbk or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grand Kartech Tbk vs. Hoffmen Cleanindo
Performance |
| Timeline |
| Grand Kartech Tbk |
| Hoffmen Cleanindo |
Grand Kartech and Hoffmen Cleanindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Kartech and Hoffmen Cleanindo
The main advantage of trading using opposite Grand Kartech and Hoffmen Cleanindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Kartech position performs unexpectedly, Hoffmen Cleanindo 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 Hoffmen Cleanindo will offset losses from the drop in Hoffmen Cleanindo's long position.| Grand Kartech vs. Nanotech Indonesia Global | Grand Kartech vs. Inocycle Technology Tbk | Grand Kartech vs. Indosterling Technomedia Tbk | Grand Kartech vs. Wintermar Offshore Marine |
| Hoffmen Cleanindo vs. Bank Central Asia | Hoffmen Cleanindo vs. Bank Rakyat Indonesia | Hoffmen Cleanindo vs. Bayan Resources Tbk | Hoffmen Cleanindo 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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