Correlation Between Sumber Tani and Habco Trans
Can any of the company-specific risk be diversified away by investing in both Sumber Tani 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 Sumber Tani and Habco Trans into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumber Tani Agung and Habco Trans Maritima, you can compare the effects of market volatilities on Sumber Tani 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 Sumber Tani with a short position of Habco Trans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumber Tani and Habco Trans.
Diversification Opportunities for Sumber Tani and Habco Trans
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sumber and Habco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sumber Tani Agung 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 Sumber Tani 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 Sumber Tani Agung 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 Sumber Tani i.e., Sumber Tani and Habco Trans go up and down completely randomly.
Pair Corralation between Sumber Tani and Habco Trans
Assuming the 90 days trading horizon Sumber Tani is expected to generate 1.44 times less return on investment than Habco Trans. But when comparing it to its historical volatility, Sumber Tani Agung is 2.11 times less risky than Habco Trans. It trades about 0.12 of its potential returns per unit of risk. Habco Trans Maritima is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 22,800 in Habco Trans Maritima on September 2, 2024 and sell it today you would earn a total of 6,000 from holding Habco Trans Maritima or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumber Tani Agung vs. Habco Trans Maritima
Performance |
| Timeline |
| Sumber Tani Agung |
| Habco Trans Maritima |
Sumber Tani and Habco Trans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumber Tani and Habco Trans
The main advantage of trading using opposite Sumber Tani and Habco Trans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumber Tani 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.| Sumber Tani vs. Triputra Agro Persada | Sumber Tani vs. Dayamitra Telekomunikasi PT | Sumber Tani vs. RMK Energy PT | Sumber Tani vs. Dharma Satya Nusantara |
| Habco Trans vs. Transcoal Pacific Tbk | Habco Trans vs. PT Temas Tbk | Habco Trans vs. Samudera Indonesia Tbk | Habco Trans vs. Pelita Samudera Shipping |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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