Correlation Between PT Bank and Hapag Lloyd
Can any of the company-specific risk be diversified away by investing in both PT Bank and Hapag Lloyd 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 Bank and Hapag Lloyd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Mandiri and Hapag Lloyd AG, you can compare the effects of market volatilities on PT Bank and Hapag Lloyd 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 Bank with a short position of Hapag Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Hapag Lloyd.
Diversification Opportunities for PT Bank and Hapag Lloyd
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PQ9 and Hapag is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG and PT Bank 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 Bank Mandiri are associated (or correlated) with Hapag Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of PT Bank i.e., PT Bank and Hapag Lloyd go up and down completely randomly.
Pair Corralation between PT Bank and Hapag Lloyd
Assuming the 90 days horizon PT Bank Mandiri is expected to under-perform the Hapag Lloyd. In addition to that, PT Bank is 1.39 times more volatile than Hapag Lloyd AG. It trades about -0.08 of its total potential returns per unit of risk. Hapag Lloyd AG is currently generating about -0.04 per unit of volatility. If you would invest 15,950 in Hapag Lloyd AG on September 1, 2024 and sell it today you would lose (640.00) from holding Hapag Lloyd AG or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. Hapag Lloyd AG
Performance |
| Timeline |
| PT Bank Mandiri |
| Hapag Lloyd AG |
PT Bank and Hapag Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Hapag Lloyd
The main advantage of trading using opposite PT Bank and Hapag Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Hapag Lloyd 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 Hapag Lloyd will offset losses from the drop in Hapag Lloyd's long position.| PT Bank vs. CODERE ONLINE LUX | PT Bank vs. Sumitomo Chemical | PT Bank vs. British American Tobacco | PT Bank vs. TIANDE CHEMICAL |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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