Correlation Between PT Hanjaya and Charlies Holdings
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Charlies Holdings 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 Hanjaya and Charlies Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Hanjaya Mandala and Charlies Holdings, you can compare the effects of market volatilities on PT Hanjaya and Charlies Holdings 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 Hanjaya with a short position of Charlies Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Charlies Holdings.
Diversification Opportunities for PT Hanjaya and Charlies Holdings
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PHJMF and Charlies is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Charlies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charlies Holdings and PT Hanjaya 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 Hanjaya Mandala are associated (or correlated) with Charlies Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charlies Holdings has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Charlies Holdings go up and down completely randomly.
Pair Corralation between PT Hanjaya and Charlies Holdings
If you would invest 3.00 in PT Hanjaya Mandala on October 23, 2024 and sell it today you would earn a total of 1.00 from holding PT Hanjaya Mandala or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Charlies Holdings
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Charlies Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PT Hanjaya and Charlies Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Charlies Holdings
The main advantage of trading using opposite PT Hanjaya and Charlies Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Charlies Holdings 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 Charlies Holdings will offset losses from the drop in Charlies Holdings' long position.| PT Hanjaya vs. Pyxus International | PT Hanjaya vs. 22nd Century Group | PT Hanjaya vs. Greenlane Holdings | PT Hanjaya vs. Japan Tobacco |
| Charlies Holdings vs. Pyxus International | Charlies Holdings vs. PT Hanjaya Mandala | Charlies Holdings vs. Greenlane Holdings | Charlies Holdings vs. Japan Tobacco ADR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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