Correlation Between Menthobi Karyatama and Habco Trans
Can any of the company-specific risk be diversified away by investing in both Menthobi Karyatama and Habco Trans 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 Menthobi Karyatama and Habco Trans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Menthobi Karyatama Raya and Habco Trans Maritima, you can compare the effects of market volatilities on Menthobi Karyatama and Habco Trans 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 Menthobi Karyatama with a short position of Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Menthobi Karyatama and Habco Trans.
Diversification Opportunities for Menthobi Karyatama and Habco Trans
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Menthobi and Habco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Menthobi Karyatama Raya and Habco Trans Maritima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habco Trans Maritima and Menthobi Karyatama 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 Menthobi Karyatama Raya are associated (or correlated) with Habco Trans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habco Trans Maritima has no effect on the direction of Menthobi Karyatama i.e., Menthobi Karyatama and Habco Trans go up and down completely randomly.
Pair Corralation between Menthobi Karyatama and Habco Trans
Assuming the 90 days trading horizon Menthobi Karyatama Raya is expected to under-perform the Habco Trans. But the stock apears to be less risky and, when comparing its historical volatility, Menthobi Karyatama Raya is 2.0 times less risky than Habco Trans. The stock trades about -0.01 of its potential returns per unit of risk. The Habco Trans Maritima is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,000 in Habco Trans Maritima on September 3, 2024 and sell it today you would earn a total of 4,000 from holding Habco Trans Maritima or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Menthobi Karyatama Raya vs. Habco Trans Maritima
Performance |
| Timeline |
| Menthobi Karyatama Raya |
| Habco Trans Maritima |
Menthobi Karyatama and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Menthobi Karyatama and Habco Trans
The main advantage of trading using opposite Menthobi Karyatama and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Menthobi Karyatama position performs unexpectedly, Habco Trans 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 Habco Trans will offset losses from the drop in Habco Trans' long position.| Menthobi Karyatama vs. Dharma Satya Nusantara | Menthobi Karyatama vs. Saratoga Investama Sedaya | Menthobi Karyatama vs. Surya Esa Perkasa | Menthobi Karyatama vs. Elang Mahkota Teknologi |
| Habco Trans vs. PT Dewi Shri | Habco Trans vs. PT Arkora Hydro | Habco Trans vs. PT Hasnur Internasional | Habco Trans vs. PT Sari Kreasi |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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