Correlation Between PT Jasa and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both PT Jasa and Huntington Bancshares 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 Jasa and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jasa Marga and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on PT Jasa and Huntington Bancshares 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 Jasa with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jasa and Huntington Bancshares.
Diversification Opportunities for PT Jasa and Huntington Bancshares
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 0JM and Huntington is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PT Jasa Marga and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and PT Jasa 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 Jasa Marga are associated (or correlated) with Huntington Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Bancshares has no effect on the direction of PT Jasa i.e., PT Jasa and Huntington Bancshares go up and down completely randomly.
Pair Corralation between PT Jasa and Huntington Bancshares
Assuming the 90 days horizon PT Jasa Marga is expected to generate 3.22 times more return on investment than Huntington Bancshares. However, PT Jasa is 3.22 times more volatile than Huntington Bancshares Incorporated. It trades about 0.02 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about -0.16 per unit of risk. If you would invest 25.00 in PT Jasa Marga on October 8, 2024 and sell it today you would earn a total of 0.00 from holding PT Jasa Marga 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 Jasa Marga vs. Huntington Bancshares Incorpor
Performance |
Timeline |
PT Jasa Marga |
Huntington Bancshares |
PT Jasa and Huntington Bancshares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Jasa and Huntington Bancshares
The main advantage of trading using opposite PT Jasa and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jasa position performs unexpectedly, Huntington Bancshares 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 Huntington Bancshares will offset losses from the drop in Huntington Bancshares' long position.PT Jasa vs. Sumitomo Rubber Industries | ||
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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