Correlation Between Pelita Samudera and Habco Trans
Can any of the company-specific risk be diversified away by investing in both Pelita Samudera and Habco Trans 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 Pelita Samudera and Habco Trans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelita Samudera Shipping and Habco Trans Maritima, you can compare the effects of market volatilities on Pelita Samudera and Habco Trans 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 Pelita Samudera with a short position of Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelita Samudera and Habco Trans.
Diversification Opportunities for Pelita Samudera and Habco Trans
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pelita and Habco is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pelita Samudera Shipping and Habco Trans Maritima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Habco Trans Maritima and Pelita Samudera 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 Pelita Samudera Shipping are associated (or correlated) with Habco Trans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Habco Trans Maritima has no effect on the direction of Pelita Samudera i.e., Pelita Samudera and Habco Trans go up and down completely randomly.
Pair Corralation between Pelita Samudera and Habco Trans
Assuming the 90 days trading horizon Pelita Samudera is expected to generate 2.65 times less return on investment than Habco Trans. But when comparing it to its historical volatility, Pelita Samudera Shipping is 2.39 times less risky than Habco Trans. It trades about 0.05 of its potential returns per unit of risk. Habco Trans Maritima is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 24,000 in Habco Trans Maritima on September 3, 2024 and sell it today you would earn a total of 4,000 from holding Habco Trans Maritima or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pelita Samudera Shipping vs. Habco Trans Maritima
Performance |
| Timeline |
| Pelita Samudera Shipping |
| Habco Trans Maritima |
Pelita Samudera and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelita Samudera and Habco Trans
The main advantage of trading using opposite Pelita Samudera and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelita Samudera position performs unexpectedly, Habco Trans 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 Habco Trans will offset losses from the drop in Habco Trans' long position.| Pelita Samudera vs. Samudera Indonesia Tbk | Pelita Samudera vs. Pelayaran Nelly Dwi | Pelita Samudera vs. Buana Listya Tama | Pelita Samudera vs. Mitrabahtera Segara Sejati |
| Habco Trans vs. PT Dewi Shri | Habco Trans vs. PT Arkora Hydro | Habco Trans vs. PT Hasnur Internasional | Habco Trans vs. PT Sari Kreasi |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |