Correlation Between PT Ketrosden and Humpuss Intermoda
Can any of the company-specific risk be diversified away by investing in both PT Ketrosden and Humpuss Intermoda 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 Ketrosden and Humpuss Intermoda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Ketrosden Triasmitra and Humpuss Intermoda Transportasi, you can compare the effects of market volatilities on PT Ketrosden and Humpuss Intermoda 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 Ketrosden with a short position of Humpuss Intermoda. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Ketrosden and Humpuss Intermoda.
Diversification Opportunities for PT Ketrosden and Humpuss Intermoda
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KETR and Humpuss is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PT Ketrosden Triasmitra and Humpuss Intermoda Transportasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humpuss Intermoda and PT Ketrosden 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 Ketrosden Triasmitra are associated (or correlated) with Humpuss Intermoda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humpuss Intermoda has no effect on the direction of PT Ketrosden i.e., PT Ketrosden and Humpuss Intermoda go up and down completely randomly.
Pair Corralation between PT Ketrosden and Humpuss Intermoda
Assuming the 90 days trading horizon PT Ketrosden is expected to generate 1.09 times less return on investment than Humpuss Intermoda. But when comparing it to its historical volatility, PT Ketrosden Triasmitra is 1.9 times less risky than Humpuss Intermoda. It trades about 0.04 of its potential returns per unit of risk. Humpuss Intermoda Transportasi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 32,000 in Humpuss Intermoda Transportasi on December 5, 2024 and sell it today you would lose (200.00) from holding Humpuss Intermoda Transportasi or give up 0.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PT Ketrosden Triasmitra vs. Humpuss Intermoda Transportasi
Performance |
Timeline |
PT Ketrosden Triasmitra |
Humpuss Intermoda |
PT Ketrosden and Humpuss Intermoda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PT Ketrosden and Humpuss Intermoda
The main advantage of trading using opposite PT Ketrosden and Humpuss Intermoda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Ketrosden position performs unexpectedly, Humpuss Intermoda 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 Humpuss Intermoda will offset losses from the drop in Humpuss Intermoda's long position.PT Ketrosden vs. Garudafood Putra Putri | PT Ketrosden vs. Victoria Insurance Tbk | PT Ketrosden vs. Diamond Food Indonesia | PT Ketrosden vs. Kedawung Setia Industrial |
Humpuss Intermoda vs. PT MNC Energy | Humpuss Intermoda vs. Tanah Laut Tbk | Humpuss Intermoda vs. Indorama Synthetics Tbk | Humpuss Intermoda vs. Fortune Mate Indonesia |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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