Correlation Between PT Hanjaya and Turning Point
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Turning Point 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 Turning Point 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 Turning Point Brands, you can compare the effects of market volatilities on PT Hanjaya and Turning Point 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 Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Turning Point.
Diversification Opportunities for PT Hanjaya and Turning Point
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PHJMF and Turning is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands 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 Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Turning Point go up and down completely randomly.
Pair Corralation between PT Hanjaya and Turning Point
Assuming the 90 days horizon PT Hanjaya Mandala is expected to under-perform the Turning Point. In addition to that, PT Hanjaya is 1.9 times more volatile than Turning Point Brands. It trades about -0.22 of its total potential returns per unit of risk. Turning Point Brands is currently generating about 0.55 per unit of volatility. If you would invest 4,673 in Turning Point Brands on August 28, 2024 and sell it today you would earn a total of 1,438 from holding Turning Point Brands or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. Turning Point Brands
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Turning Point Brands |
PT Hanjaya and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Turning Point
The main advantage of trading using opposite PT Hanjaya and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point'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 |
| Turning Point vs. Imperial Brands PLC | Turning Point vs. Philip Morris International | Turning Point vs. Japan Tobacco ADR | Turning Point vs. Imperial Brands PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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