Correlation Between PT Hanjaya and Marimaca Copper
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Marimaca Copper 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 Marimaca Copper 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 Marimaca Copper Corp, you can compare the effects of market volatilities on PT Hanjaya and Marimaca Copper 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 Marimaca Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Marimaca Copper.
Diversification Opportunities for PT Hanjaya and Marimaca Copper
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHJMF and Marimaca is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Marimaca Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimaca Copper 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 Marimaca Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimaca Copper Corp has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Marimaca Copper go up and down completely randomly.
Pair Corralation between PT Hanjaya and Marimaca Copper
Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 3.17 times more return on investment than Marimaca Copper. However, PT Hanjaya is 3.17 times more volatile than Marimaca Copper Corp. It trades about 0.18 of its potential returns per unit of risk. Marimaca Copper Corp is currently generating about 0.24 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Marimaca Copper Corp
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Marimaca Copper Corp |
PT Hanjaya and Marimaca Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Marimaca Copper
The main advantage of trading using opposite PT Hanjaya and Marimaca Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Marimaca Copper 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 Marimaca Copper will offset losses from the drop in Marimaca Copper'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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