Correlation Between CDN IMPERIAL and HEXINDO ADIPERKASA

Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL and HEXINDO ADIPERKASA 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 CDN IMPERIAL and HEXINDO ADIPERKASA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CDN IMPERIAL BANK and HEXINDO ADIPERKASA, you can compare the effects of market volatilities on CDN IMPERIAL and HEXINDO ADIPERKASA 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 CDN IMPERIAL with a short position of HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and HEXINDO ADIPERKASA.

Diversification Opportunities for CDN IMPERIAL and HEXINDO ADIPERKASA

0.0

Correlation Coefficient

CDN IMPERIAL  HEXINDO ADIPERKASA

Pay attention - limited upside

The 3 months correlation between CDN and HEXINDO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA and CDN IMPERIAL 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 CDN IMPERIAL BANK are associated (or correlated) with HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of CDN IMPERIAL i.e., CDN IMPERIAL and HEXINDO ADIPERKASA go up and down completely randomly.

Pair Corralation between CDN IMPERIAL and HEXINDO ADIPERKASA

If you would invest (100.00) in HEXINDO ADIPERKASA on December 20, 2024 and sell it today you would earn a total of  100.00  from holding HEXINDO ADIPERKASA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CDN IMPERIAL BANK  vs.  HEXINDO ADIPERKASA

CDN IMPERIAL BANK

Risk-Adjusted Performance

Very Weak

Over the last 90 days CDN IMPERIAL BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

HEXINDO ADIPERKASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days HEXINDO ADIPERKASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HEXINDO ADIPERKASA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CDN IMPERIAL and HEXINDO ADIPERKASA

The main advantage of trading using opposite CDN IMPERIAL and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.

The idea behind CDN IMPERIAL BANK and HEXINDO ADIPERKASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.