Correlation Between PT Homeco and Protech Mitra
Can any of the company-specific risk be diversified away by investing in both PT Homeco and Protech Mitra 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 Homeco and Protech Mitra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Homeco Victoria and Protech Mitra Perkasa, you can compare the effects of market volatilities on PT Homeco and Protech Mitra 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 Homeco with a short position of Protech Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Homeco and Protech Mitra.
Diversification Opportunities for PT Homeco and Protech Mitra
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LIVE and Protech is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PT Homeco Victoria and Protech Mitra Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protech Mitra Perkasa and PT Homeco 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 Homeco Victoria are associated (or correlated) with Protech Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protech Mitra Perkasa has no effect on the direction of PT Homeco i.e., PT Homeco and Protech Mitra go up and down completely randomly.
Pair Corralation between PT Homeco and Protech Mitra
Assuming the 90 days trading horizon PT Homeco Victoria is expected to generate 1.99 times more return on investment than Protech Mitra. However, PT Homeco is 1.99 times more volatile than Protech Mitra Perkasa. It trades about 0.01 of its potential returns per unit of risk. Protech Mitra Perkasa is currently generating about -0.06 per unit of risk. If you would invest 20,000 in PT Homeco Victoria on September 3, 2024 and sell it today you would lose (300.00) from holding PT Homeco Victoria or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Homeco Victoria vs. Protech Mitra Perkasa
Performance |
| Timeline |
| PT Homeco Victoria |
| Protech Mitra Perkasa |
PT Homeco and Protech Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Homeco and Protech Mitra
The main advantage of trading using opposite PT Homeco and Protech Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Homeco position performs unexpectedly, Protech Mitra 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 Protech Mitra will offset losses from the drop in Protech Mitra's long position.| PT Homeco vs. Chandra Asri Petrochemical | PT Homeco vs. Bank Negara Indonesia | PT Homeco vs. Sumber Alfaria Trijaya | PT Homeco vs. Mitra Pinasthika Mustika |
| Protech Mitra vs. Intanwijaya Internasional Tbk | Protech Mitra vs. Champion Pacific Indonesia | Protech Mitra vs. Mitra Pinasthika Mustika | Protech Mitra vs. Jakarta Int Hotels |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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