Correlation Between Aesler Grup and Hoffmen Cleanindo
Can any of the company-specific risk be diversified away by investing in both Aesler Grup and Hoffmen Cleanindo 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 Aesler Grup and Hoffmen Cleanindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesler Grup Internasional and Hoffmen Cleanindo, you can compare the effects of market volatilities on Aesler Grup and Hoffmen Cleanindo 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 Aesler Grup with a short position of Hoffmen Cleanindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesler Grup and Hoffmen Cleanindo.
Diversification Opportunities for Aesler Grup and Hoffmen Cleanindo
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aesler and Hoffmen is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aesler Grup Internasional and Hoffmen Cleanindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoffmen Cleanindo and Aesler Grup 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 Aesler Grup Internasional are associated (or correlated) with Hoffmen Cleanindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoffmen Cleanindo has no effect on the direction of Aesler Grup i.e., Aesler Grup and Hoffmen Cleanindo go up and down completely randomly.
Pair Corralation between Aesler Grup and Hoffmen Cleanindo
Assuming the 90 days trading horizon Aesler Grup Internasional is expected to generate 2.08 times more return on investment than Hoffmen Cleanindo. However, Aesler Grup is 2.08 times more volatile than Hoffmen Cleanindo. It trades about 0.58 of its potential returns per unit of risk. Hoffmen Cleanindo is currently generating about -0.17 per unit of risk. If you would invest 40,000 in Aesler Grup Internasional on September 13, 2024 and sell it today you would earn a total of 70,500 from holding Aesler Grup Internasional or generate 176.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Aesler Grup Internasional vs. Hoffmen Cleanindo
Performance |
| Timeline |
| Aesler Grup Internasional |
| Hoffmen Cleanindo |
Aesler Grup and Hoffmen Cleanindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesler Grup and Hoffmen Cleanindo
The main advantage of trading using opposite Aesler Grup and Hoffmen Cleanindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesler Grup position performs unexpectedly, Hoffmen Cleanindo 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 Hoffmen Cleanindo will offset losses from the drop in Hoffmen Cleanindo's long position.| Aesler Grup vs. Hoffmen Cleanindo | Aesler Grup vs. Metrodata Electronics Tbk | Aesler Grup vs. Lippo General Insurance | Aesler Grup vs. PT Hetzer Medical |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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