Correlation Between PT Hanjaya and Ciena Corp
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Ciena Corp 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 Ciena Corp 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 Ciena Corp, you can compare the effects of market volatilities on PT Hanjaya and Ciena Corp 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 Ciena Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Ciena Corp.
Diversification Opportunities for PT Hanjaya and Ciena Corp
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PHJMF and Ciena is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Ciena Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciena Corp 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 Ciena Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciena Corp has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Ciena Corp go up and down completely randomly.
Pair Corralation between PT Hanjaya and Ciena Corp
Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 4.9 times more return on investment than Ciena Corp. However, PT Hanjaya is 4.9 times more volatile than Ciena Corp. It trades about 0.18 of its potential returns per unit of risk. Ciena Corp is currently generating about 0.19 per unit of risk. If you would invest 3.00 in PT Hanjaya Mandala on October 24, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Ciena Corp
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Ciena Corp |
PT Hanjaya and Ciena Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Ciena Corp
The main advantage of trading using opposite PT Hanjaya and Ciena Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Ciena Corp 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 Ciena Corp will offset losses from the drop in Ciena Corp's long position.| PT Hanjaya vs. Pyxus International | PT Hanjaya vs. 22nd Century Group | PT Hanjaya vs. Greenlane Holdings | PT Hanjaya vs. Japan Tobacco |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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