Correlation Between Integra Indocabinet and PT Hasnur
Can any of the company-specific risk be diversified away by investing in both Integra Indocabinet and PT Hasnur 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 Integra Indocabinet and PT Hasnur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra Indocabinet Tbk and PT Hasnur Internasional, you can compare the effects of market volatilities on Integra Indocabinet and PT Hasnur 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 Integra Indocabinet with a short position of PT Hasnur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra Indocabinet and PT Hasnur.
Diversification Opportunities for Integra Indocabinet and PT Hasnur
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integra and HAIS is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Integra Indocabinet Tbk and PT Hasnur Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hasnur Internasional and Integra Indocabinet 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 Integra Indocabinet Tbk are associated (or correlated) with PT Hasnur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hasnur Internasional has no effect on the direction of Integra Indocabinet i.e., Integra Indocabinet and PT Hasnur go up and down completely randomly.
Pair Corralation between Integra Indocabinet and PT Hasnur
Assuming the 90 days trading horizon Integra Indocabinet is expected to generate 1.95 times less return on investment than PT Hasnur. In addition to that, Integra Indocabinet is 1.2 times more volatile than PT Hasnur Internasional. It trades about 0.01 of its total potential returns per unit of risk. PT Hasnur Internasional is currently generating about 0.02 per unit of volatility. If you would invest 19,707 in PT Hasnur Internasional on August 30, 2024 and sell it today you would earn a total of 2,293 from holding PT Hasnur Internasional or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra Indocabinet Tbk vs. PT Hasnur Internasional
Performance |
| Timeline |
| Integra Indocabinet Tbk |
| PT Hasnur Internasional |
Integra Indocabinet and PT Hasnur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra Indocabinet and PT Hasnur
The main advantage of trading using opposite Integra Indocabinet and PT Hasnur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra Indocabinet position performs unexpectedly, PT Hasnur 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 Hasnur will offset losses from the drop in PT Hasnur's long position.| Integra Indocabinet vs. Pembangunan Jaya Ancol | Integra Indocabinet vs. Panorama Sentrawisata Tbk | Integra Indocabinet vs. Millennium Pharmacon International | Integra Indocabinet vs. Tempo Inti Media |
| PT Hasnur vs. PAM Mineral Tbk | PT Hasnur vs. Pelayaran Nelly Dwi | PT Hasnur vs. Bintang Samudera Mandiri | PT Hasnur vs. Trans Power Marine |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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