Correlation Between Habco Trans and PT Puri

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

By analyzing existing cross correlation between Habco Trans Maritima and PT Puri Sentul, you can compare the effects of market volatilities on Habco Trans and PT Puri 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 Habco Trans with a short position of PT Puri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Habco Trans and PT Puri.

Diversification Opportunities for Habco Trans and PT Puri

-0.34

Correlation Coefficient

Habco Trans  PT Puri

Very good diversification

The 3 months correlation between Habco and KDTN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Habco Trans Maritima and PT Puri Sentul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Puri Sentul and Habco Trans 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 Habco Trans Maritima are associated (or correlated) with PT Puri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Puri Sentul has no effect on the direction of Habco Trans i.e., Habco Trans and PT Puri go up and down completely randomly.

Pair Corralation between Habco Trans and PT Puri

Assuming the 90 days trading horizon Habco Trans Maritima is expected to under-perform the PT Puri. In addition to that, Habco Trans is 1.11 times more volatile than PT Puri Sentul. It trades about -0.04 of its total potential returns per unit of risk. PT Puri Sentul is currently generating about 0.05 per unit of volatility. If you would invest  12,100  in PT Puri Sentul on December 27, 2024 and sell it today you would earn a total of  600.00  from holding PT Puri Sentul or generate 4.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Habco Trans Maritima  vs.  PT Puri Sentul

Habco Trans Maritima

Risk-Adjusted Performance

Very Weak

Over the last 90 days Habco Trans Maritima has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

PT Puri Sentul

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PT Puri Sentul are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, PT Puri may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Habco Trans and PT Puri

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

The idea behind Habco Trans Maritima and PT Puri Sentul 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.