Correlation Between Ace Oldfields and PT Hasnur
Can any of the company-specific risk be diversified away by investing in both Ace Oldfields and PT Hasnur 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 Ace Oldfields and PT Hasnur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ace Oldfields PT and PT Hasnur Internasional, you can compare the effects of market volatilities on Ace Oldfields and PT Hasnur 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 Ace Oldfields with a short position of PT Hasnur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ace Oldfields and PT Hasnur.
Diversification Opportunities for Ace Oldfields and PT Hasnur
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ace and HAIS is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ace Oldfields PT and PT Hasnur Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hasnur Internasional and Ace Oldfields 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 Ace Oldfields PT are associated (or correlated) with PT Hasnur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hasnur Internasional has no effect on the direction of Ace Oldfields i.e., Ace Oldfields and PT Hasnur go up and down completely randomly.
Pair Corralation between Ace Oldfields and PT Hasnur
Assuming the 90 days trading horizon Ace Oldfields PT is expected to under-perform the PT Hasnur. But the stock apears to be less risky and, when comparing its historical volatility, Ace Oldfields PT is 1.04 times less risky than PT Hasnur. The stock trades about -0.19 of its potential returns per unit of risk. The PT Hasnur Internasional is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 22,800 in PT Hasnur Internasional on August 26, 2024 and sell it today you would lose (1,000.00) from holding PT Hasnur Internasional or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ace Oldfields PT vs. PT Hasnur Internasional
Performance |
| Timeline |
| Ace Oldfields PT |
| PT Hasnur Internasional |
Ace Oldfields and PT Hasnur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ace Oldfields and PT Hasnur
The main advantage of trading using opposite Ace Oldfields and PT Hasnur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ace Oldfields position performs unexpectedly, PT Hasnur 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 PT Hasnur will offset losses from the drop in PT Hasnur's long position.| Ace Oldfields vs. Ladangbaja Murni PT | Ace Oldfields vs. PT Hasnur Internasional | Ace Oldfields vs. Geoprima Solusi Tbk | Ace Oldfields vs. Prima Andalan Mandiri |
| PT Hasnur vs. PAM Mineral Tbk | PT Hasnur vs. Pelayaran Nelly Dwi | PT Hasnur vs. Bintang Samudera Mandiri | PT Hasnur vs. Trans Power Marine |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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