Correlation Between PT Hatten and Citra Borneo
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Citra Borneo 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 Citra Borneo 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 Citra Borneo Utama, you can compare the effects of market volatilities on PT Hatten and Citra Borneo 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 Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Citra Borneo.
Diversification Opportunities for PT Hatten and Citra Borneo
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WINE and Citra is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama 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 Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of PT Hatten i.e., PT Hatten and Citra Borneo go up and down completely randomly.
Pair Corralation between PT Hatten and Citra Borneo
Assuming the 90 days trading horizon PT Hatten Bali is expected to generate 1.64 times more return on investment than Citra Borneo. However, PT Hatten is 1.64 times more volatile than Citra Borneo Utama. It trades about 0.13 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about -0.13 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hatten Bali vs. Citra Borneo Utama
Performance |
| Timeline |
| PT Hatten Bali |
| Citra Borneo Utama |
PT Hatten and Citra Borneo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Citra Borneo
The main advantage of trading using opposite PT Hatten and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Citra Borneo 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 Citra Borneo will offset losses from the drop in Citra Borneo'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 |
| Citra Borneo vs. Habco Trans Maritima | Citra Borneo vs. PT Cilacap Samudera | Citra Borneo vs. PT Sari Kreasi | Citra Borneo vs. Autopedia Sukses Lestari |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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