Correlation Between PT Hatten and PT Winner
Can any of the company-specific risk be diversified away by investing in both PT Hatten and PT Winner 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 Winner 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 Winner Nusantara, you can compare the effects of market volatilities on PT Hatten and PT Winner 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 Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and PT Winner.
Diversification Opportunities for PT Hatten and PT Winner
Average diversification
The 3 months correlation between WINE and WINR is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of PT Hatten i.e., PT Hatten and PT Winner go up and down completely randomly.
Pair Corralation between PT Hatten and PT Winner
Assuming the 90 days trading horizon PT Hatten Bali is expected to under-perform the PT Winner. But the stock apears to be less risky and, when comparing its historical volatility, PT Hatten Bali is 3.11 times less risky than PT Winner. The stock trades about -0.26 of its potential returns per unit of risk. The PT Winner Nusantara is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,400 in PT Winner Nusantara on October 25, 2024 and sell it today you would earn a total of 400.00 from holding PT Winner Nusantara or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
PT Hatten Bali vs. PT Winner Nusantara
Performance |
| Timeline |
| PT Hatten Bali |
| PT Winner Nusantara |
PT Hatten and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Hatten and PT Winner
The main advantage of trading using opposite PT Hatten and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hatten position performs unexpectedly, PT Winner 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 Winner will offset losses from the drop in PT Winner's long position.| PT Hatten vs. Bank Central Asia | PT Hatten vs. Bank Rakyat Indonesia | PT Hatten vs. Bayan Resources Tbk | PT Hatten vs. Bank Mandiri Persero |
| PT Winner vs. PT Hatten Bali | PT Winner vs. Metrodata Electronics Tbk | PT Winner vs. Panin Financial Tbk | PT Winner vs. Tera Data Indonusa |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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