Correlation Between PT Hatten and Global Mediacom
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Global Mediacom 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 Global Mediacom 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 Global Mediacom Tbk, you can compare the effects of market volatilities on PT Hatten and Global Mediacom 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 Global Mediacom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Global Mediacom.
Diversification Opportunities for PT Hatten and Global Mediacom
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WINE and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Global Mediacom Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mediacom Tbk 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 Global Mediacom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mediacom Tbk has no effect on the direction of PT Hatten i.e., PT Hatten and Global Mediacom go up and down completely randomly.
Pair Corralation between PT Hatten and Global Mediacom
Assuming the 90 days trading horizon PT Hatten Bali is expected to generate 2.77 times more return on investment than Global Mediacom. However, PT Hatten is 2.77 times more volatile than Global Mediacom Tbk. It trades about 0.13 of its potential returns per unit of risk. Global Mediacom Tbk is currently generating about -0.17 per unit of risk. If you would invest 26,600 in PT Hatten Bali on September 2, 2024 and sell it today you would earn a total of 8,400 from holding PT Hatten Bali or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hatten Bali vs. Global Mediacom Tbk
Performance |
| Timeline |
| PT Hatten Bali |
| Global Mediacom Tbk |
PT Hatten and Global Mediacom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Global Mediacom
The main advantage of trading using opposite PT Hatten and Global Mediacom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Global Mediacom 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 Global Mediacom will offset losses from the drop in Global Mediacom's long position.| PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral Tbk | PT Hatten vs. Autopedia Sukses Lestari |
| Global Mediacom vs. Indosat Tbk | Global Mediacom vs. XL Axiata Tbk | Global Mediacom vs. Energi Mega Persada | Global Mediacom vs. Bakrie Brothers 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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