Correlation Between PT Hatten and Era Media
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Era Media 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 Era Media 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 Era Media Sejahtera, you can compare the effects of market volatilities on PT Hatten and Era Media 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 Era Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Era Media.
Diversification Opportunities for PT Hatten and Era Media
Very good diversification
The 3 months correlation between WINE and Era is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Era Media Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Media Sejahtera 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 Era Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Media Sejahtera has no effect on the direction of PT Hatten i.e., PT Hatten and Era Media go up and down completely randomly.
Pair Corralation between PT Hatten and Era Media
Assuming the 90 days trading horizon PT Hatten Bali is expected to under-perform the Era Media. In addition to that, PT Hatten is 1.84 times more volatile than Era Media Sejahtera. It trades about -0.04 of its total potential returns per unit of risk. Era Media Sejahtera is currently generating about -0.05 per unit of volatility. If you would invest 5,600 in Era Media Sejahtera on September 2, 2024 and sell it today you would lose (100.00) from holding Era Media Sejahtera or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Hatten Bali vs. Era Media Sejahtera
Performance |
| Timeline |
| PT Hatten Bali |
| Era Media Sejahtera |
PT Hatten and Era Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Era Media
The main advantage of trading using opposite PT Hatten and Era Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Era Media 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 Era Media will offset losses from the drop in Era Media'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 |
| Era Media vs. Bank Central Asia | Era Media vs. Bank Rakyat Indonesia | Era Media vs. Bayan Resources Tbk | Era Media vs. Bank Mandiri Persero |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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