Correlation Between PT Hanjaya and 22nd Century
Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and 22nd Century 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 22nd Century 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 22nd Century Group, you can compare the effects of market volatilities on PT Hanjaya and 22nd Century 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 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and 22nd Century.
Diversification Opportunities for PT Hanjaya and 22nd Century
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHJMF and 22nd is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group 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 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and 22nd Century go up and down completely randomly.
Pair Corralation between PT Hanjaya and 22nd Century
Assuming the 90 days horizon PT Hanjaya Mandala is expected to under-perform the 22nd Century. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Hanjaya Mandala is 1.65 times less risky than 22nd Century. The pink sheet trades about -0.22 of its potential returns per unit of risk. The 22nd Century Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 11.00 in 22nd Century Group on August 28, 2024 and sell it today you would lose (1.98) from holding 22nd Century Group or give up 18.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hanjaya Mandala vs. 22nd Century Group
Performance |
| Timeline |
| PT Hanjaya Mandala |
| 22nd Century Group |
PT Hanjaya and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hanjaya and 22nd Century
The main advantage of trading using opposite PT Hanjaya and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century'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 |
| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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