Correlation Between PT Homeco and PT Hatten
Can any of the company-specific risk be diversified away by investing in both PT Homeco and PT Hatten 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 PT Hatten 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 PT Hatten Bali, you can compare the effects of market volatilities on PT Homeco and PT Hatten 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 PT Hatten. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Homeco and PT Hatten.
Diversification Opportunities for PT Homeco and PT Hatten
Very weak diversification
The 3 months correlation between LIVE and WINE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PT Homeco Victoria and PT Hatten Bali in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hatten Bali 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 PT Hatten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hatten Bali has no effect on the direction of PT Homeco i.e., PT Homeco and PT Hatten go up and down completely randomly.
Pair Corralation between PT Homeco and PT Hatten
Assuming the 90 days trading horizon PT Homeco is expected to generate 2.03 times less return on investment than PT Hatten. But when comparing it to its historical volatility, PT Homeco Victoria is 1.31 times less risky than PT Hatten. It trades about 0.04 of its potential returns per unit of risk. PT Hatten Bali is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17,213 in PT Hatten Bali on September 2, 2024 and sell it today you would earn a total of 17,787 from holding PT Hatten Bali or generate 103.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.29% |
| Values | Daily Returns |
PT Homeco Victoria vs. PT Hatten Bali
Performance |
| Timeline |
| PT Homeco Victoria |
| PT Hatten Bali |
PT Homeco and PT Hatten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Homeco and PT Hatten
The main advantage of trading using opposite PT Homeco and PT Hatten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Homeco position performs unexpectedly, PT Hatten 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 Hatten will offset losses from the drop in PT Hatten's long position.| PT Homeco vs. Surya Citra Media | PT Homeco vs. Ciptadana Asset Management | PT Homeco vs. Smartfren Telecom Tbk | PT Homeco vs. Indointernet Tbk PT |
| PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk | PT Hatten vs. Autopedia Sukses Lestari |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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