Correlation Between PT Hanjaya and Inpex Corp
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Inpex 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 Inpex 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 Inpex Corp ADR, you can compare the effects of market volatilities on PT Hanjaya and Inpex 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 Inpex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Inpex Corp.
Diversification Opportunities for PT Hanjaya and Inpex Corp
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHJMF and Inpex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Inpex Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpex Corp ADR 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 Inpex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpex Corp ADR has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Inpex Corp go up and down completely randomly.
Pair Corralation between PT Hanjaya and Inpex Corp
Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 5.61 times more return on investment than Inpex Corp. However, PT Hanjaya is 5.61 times more volatile than Inpex Corp ADR. It trades about 0.04 of its potential returns per unit of risk. Inpex Corp ADR is currently generating about 0.0 per unit of risk. If you would invest 6.00 in PT Hanjaya Mandala on August 27, 2024 and sell it today you would lose (2.00) from holding PT Hanjaya Mandala or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.68% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Inpex Corp ADR
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Inpex Corp ADR |
PT Hanjaya and Inpex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Inpex Corp
The main advantage of trading using opposite PT Hanjaya and Inpex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Inpex 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 Inpex Corp will offset losses from the drop in Inpex Corp's long position.| PT Hanjaya vs. Imperial Brands PLC | PT Hanjaya vs. RLX Technology | PT Hanjaya vs. British American Tobacco | PT Hanjaya vs. Turning Point Brands |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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