Correlation Between HK Metals and Borneo Olah
Can any of the company-specific risk be diversified away by investing in both HK Metals and Borneo Olah 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 HK Metals and Borneo Olah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HK Metals Utama and Borneo Olah Sarana, you can compare the effects of market volatilities on HK Metals and Borneo Olah 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 HK Metals with a short position of Borneo Olah. Check out your portfolio center. Please also check ongoing floating volatility patterns of HK Metals and Borneo Olah.
Diversification Opportunities for HK Metals and Borneo Olah
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKMU and Borneo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HK Metals Utama and Borneo Olah Sarana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borneo Olah Sarana and HK Metals 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 HK Metals Utama are associated (or correlated) with Borneo Olah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borneo Olah Sarana has no effect on the direction of HK Metals i.e., HK Metals and Borneo Olah go up and down completely randomly.
Pair Corralation between HK Metals and Borneo Olah
If you would invest 5,000 in Borneo Olah Sarana on September 18, 2024 and sell it today you would earn a total of 0.00 from holding Borneo Olah Sarana or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
HK Metals Utama vs. Borneo Olah Sarana
Performance |
Timeline |
HK Metals Utama |
Borneo Olah Sarana |
HK Metals and Borneo Olah Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HK Metals and Borneo Olah
The main advantage of trading using opposite HK Metals and Borneo Olah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HK Metals position performs unexpectedly, Borneo Olah 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 Borneo Olah will offset losses from the drop in Borneo Olah's long position.HK Metals vs. PT Indonesia Kendaraan | HK Metals vs. Wijaya Karya Bangunan | HK Metals vs. Buyung Poetra Sembada | HK Metals vs. J Resources Asia |
Borneo Olah vs. Alfa Energi Investama | Borneo Olah vs. Baramulti Suksessarana Tbk | Borneo Olah vs. Golden Eagle Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |