Correlation Between 1606 Corp and PT Hanjaya

Can any of the company-specific risk be diversified away by investing in both 1606 Corp and PT Hanjaya 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 1606 Corp and PT Hanjaya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 1606 Corp and PT Hanjaya Mandala, you can compare the effects of market volatilities on 1606 Corp and PT Hanjaya 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 1606 Corp with a short position of PT Hanjaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1606 Corp and PT Hanjaya.

Diversification Opportunities for 1606 Corp and PT Hanjaya

0.52

Correlation Coefficient

1606 Corp  PT Hanjaya

Very weak diversification

The 3 months correlation between 1606 and PHJMF is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding 1606 Corp and PT Hanjaya Mandala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hanjaya Mandala and 1606 Corp 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 1606 Corp are associated (or correlated) with PT Hanjaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hanjaya Mandala has no effect on the direction of 1606 Corp i.e., 1606 Corp and PT Hanjaya go up and down completely randomly.

Pair Corralation between 1606 Corp and PT Hanjaya

Given the investment horizon of 90 days 1606 Corp is expected to generate 1.09 times less return on investment than PT Hanjaya. In addition to that, 1606 Corp is 1.33 times more volatile than PT Hanjaya Mandala. It trades about 0.06 of its total potential returns per unit of risk. PT Hanjaya Mandala is currently generating about 0.08 per unit of volatility. If you would invest  3.97  in PT Hanjaya Mandala on December 27, 2024 and sell it today you would earn a total of  0.62  from holding PT Hanjaya Mandala or generate 15.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.08%
Values	Daily Returns

1606 Corp  vs.  PT Hanjaya Mandala

1606 Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in 1606 Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, 1606 Corp showed solid returns over the last few months and may actually be approaching a breakup point.

PT Hanjaya Mandala

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hanjaya Mandala are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, PT Hanjaya reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 1606 Corp and PT Hanjaya

The main advantage of trading using opposite 1606 Corp and PT Hanjaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1606 Corp position performs unexpectedly, PT Hanjaya 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 Hanjaya will offset losses from the drop in PT Hanjaya's long position.

The idea behind 1606 Corp and PT Hanjaya Mandala 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.