Correlation Between PT Hanjaya and Exchange Bank
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Exchange Bank 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 Exchange Bank 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 Exchange Bank, you can compare the effects of market volatilities on PT Hanjaya and Exchange Bank 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 Exchange Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Exchange Bank.
Diversification Opportunities for PT Hanjaya and Exchange Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHJMF and Exchange is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Exchange Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Bank 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 Exchange Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Bank has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Exchange Bank go up and down completely randomly.
Pair Corralation between PT Hanjaya and Exchange Bank
Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 2.62 times more return on investment than Exchange Bank. However, PT Hanjaya is 2.62 times more volatile than Exchange Bank. It trades about 0.04 of its potential returns per unit of risk. Exchange Bank is currently generating about 0.02 per unit of risk. If you would invest 5.78 in PT Hanjaya Mandala on September 4, 2024 and sell it today you would lose (1.73) from holding PT Hanjaya Mandala or give up 29.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.8% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Exchange Bank
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Exchange Bank |
PT Hanjaya and Exchange Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Exchange Bank
The main advantage of trading using opposite PT Hanjaya and Exchange Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Exchange Bank 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 Exchange Bank will offset losses from the drop in Exchange Bank's long position.| PT Hanjaya vs. Pyxus International | PT Hanjaya vs. 22nd Century Group | PT Hanjaya vs. Greenlane Holdings | PT Hanjaya vs. Japan Tobacco |
| Exchange Bank vs. Foreign Trade Bank | Exchange Bank vs. Comerica | Exchange Bank vs. Delhi Bank Corp | Exchange Bank vs. CCSB Financial Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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