Correlation Between PT Hatten and Indo Acidatama
Can any of the company-specific risk be diversified away by investing in both PT Hatten and Indo Acidatama 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 Indo Acidatama 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 Indo Acidatama Tbk, you can compare the effects of market volatilities on PT Hatten and Indo Acidatama 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 Indo Acidatama. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Indo Acidatama.
Diversification Opportunities for PT Hatten and Indo Acidatama
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WINE and Indo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Indo Acidatama Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Acidatama 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 Indo Acidatama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Acidatama Tbk has no effect on the direction of PT Hatten i.e., PT Hatten and Indo Acidatama go up and down completely randomly.
Pair Corralation between PT Hatten and Indo Acidatama
Assuming the 90 days trading horizon PT Hatten Bali is expected to under-perform the Indo Acidatama. In addition to that, PT Hatten is 2.63 times more volatile than Indo Acidatama Tbk. It trades about -0.09 of its total potential returns per unit of risk. Indo Acidatama Tbk is currently generating about 0.01 per unit of volatility. If you would invest 5,100 in Indo Acidatama Tbk on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Indo Acidatama Tbk or generate 0.0% 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. Indo Acidatama Tbk
Performance |
| Timeline |
| PT Hatten Bali |
| Indo Acidatama Tbk |
PT Hatten and Indo Acidatama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and Indo Acidatama
The main advantage of trading using opposite PT Hatten and Indo Acidatama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, Indo Acidatama 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 Indo Acidatama will offset losses from the drop in Indo Acidatama'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 |
| Indo Acidatama vs. PT Sreeya Sewu | Indo Acidatama vs. Trias Sentosa Tbk | Indo Acidatama vs. Slj Global Tbk | Indo Acidatama vs. Suparma 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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