Correlation Between PT Hatten and Bank Central
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Bank Central 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 Hatten and Bank Central into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Hatten Bali and Bank Central Asia, you can compare the effects of market volatilities on PT Hatten and Bank Central 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 Hatten with a short position of Bank Central. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Bank Central.
Diversification Opportunities for PT Hatten and Bank Central
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between WINE and Bank is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Bank Central Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Central Asia and PT Hatten 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 Hatten Bali are associated (or correlated) with Bank Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Central Asia has no effect on the direction of PT Hatten i.e., PT Hatten and Bank Central go up and down completely randomly.
Pair Corralation between PT Hatten and Bank Central
Assuming the 90 days trading horizon PT Hatten Bali is expected to generate 2.79 times more return on investment than Bank Central. However, PT Hatten is 2.79 times more volatile than Bank Central Asia. It trades about 0.0 of its potential returns per unit of risk. Bank Central Asia is currently generating about -0.04 per unit of risk. If you would invest 35,800 in PT Hatten Bali on August 30, 2024 and sell it today you would lose (800.00) from holding PT Hatten Bali or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hatten Bali vs. Bank Central Asia
Performance |
| Timeline |
| PT Hatten Bali |
| Bank Central Asia |
PT Hatten and Bank Central Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Bank Central
The main advantage of trading using opposite PT Hatten and Bank Central positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Bank Central 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 Bank Central will offset losses from the drop in Bank Central's long position.| PT Hatten vs. PT Jobubu Jarum | PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk |
| Bank Central vs. Bank Rakyat Indonesia | Bank Central vs. Bank Mandiri Persero | Bank Central vs. Bank Negara Indonesia | Bank Central vs. Astra International Tbk |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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