Correlation Between PT Hatten and PT Homeco
Can any of the company-specific risk be diversified away by investing in both PT Hatten and PT Homeco 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 PT Homeco 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 PT Homeco Victoria, you can compare the effects of market volatilities on PT Hatten and PT Homeco 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 PT Homeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and PT Homeco.
Diversification Opportunities for PT Hatten and PT Homeco
Very weak diversification
The 3 months correlation between WINE and LIVE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and PT Homeco Victoria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Homeco Victoria 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 PT Homeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Homeco Victoria has no effect on the direction of PT Hatten i.e., PT Hatten and PT Homeco go up and down completely randomly.
Pair Corralation between PT Hatten and PT Homeco
Assuming the 90 days trading horizon PT Hatten Bali is expected to generate 1.31 times more return on investment than PT Homeco. However, PT Hatten is 1.31 times more volatile than PT Homeco Victoria. It trades about 0.05 of its potential returns per unit of risk. PT Homeco Victoria is currently generating about 0.04 per unit of risk. If you would invest 17,213 in PT Hatten Bali on September 2, 2024 and sell it today you would earn a total of 17,787 from holding PT Hatten Bali or generate 103.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.29% |
| Values | Daily Returns |
PT Hatten Bali vs. PT Homeco Victoria
Performance |
| Timeline |
| PT Hatten Bali |
| PT Homeco Victoria |
PT Hatten and PT Homeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and PT Homeco
The main advantage of trading using opposite PT Hatten and PT Homeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, PT Homeco 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 PT Homeco will offset losses from the drop in PT Homeco'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 |
| PT Homeco vs. Surya Citra Media | PT Homeco vs. Ciptadana Asset Management | PT Homeco vs. Smartfren Telecom Tbk | PT Homeco vs. Indointernet Tbk PT |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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