Correlation Between PT Hanjaya and Webstar Technology
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Webstar Technology 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 Webstar Technology 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 Webstar Technology Group, you can compare the effects of market volatilities on PT Hanjaya and Webstar Technology 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 Webstar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Webstar Technology.
Diversification Opportunities for PT Hanjaya and Webstar Technology
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PHJMF and Webstar is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Webstar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webstar Technology 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 Webstar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webstar Technology has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Webstar Technology go up and down completely randomly.
Pair Corralation between PT Hanjaya and Webstar Technology
Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 1.04 times more return on investment than Webstar Technology. However, PT Hanjaya is 1.04 times more volatile than Webstar Technology Group. It trades about 0.18 of its potential returns per unit of risk. Webstar Technology Group is currently generating about 0.08 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. Webstar Technology Group
Performance |
| Timeline |
| PT Hanjaya Mandala |
| Webstar Technology |
PT Hanjaya and Webstar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and Webstar Technology
The main advantage of trading using opposite PT Hanjaya and Webstar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Webstar Technology 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 Webstar Technology will offset losses from the drop in Webstar Technology's long position.| PT Hanjaya vs. Pyxus International | PT Hanjaya vs. 22nd Century Group | PT Hanjaya vs. Greenlane Holdings | PT Hanjaya vs. Japan Tobacco |
| Webstar Technology vs. WH Group Limited | Webstar Technology vs. Maptelligent | Webstar Technology vs. Aquagold International | Webstar Technology vs. High Yield Municipal Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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