Correlation Between Ladangbaja Murni and PT Harapan

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

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

Diversification Opportunities for Ladangbaja Murni and PT Harapan

0.0

Correlation Coefficient

Ladangbaja Murni  PT Harapan

Pay attention - limited upside

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

Pair Corralation between Ladangbaja Murni and PT Harapan

If you would invest (100.00) in PT Harapan Duta on October 10, 2024 and sell it today you would earn a total of  100.00  from holding PT Harapan Duta 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

Ladangbaja Murni PT  vs.  PT Harapan Duta

Ladangbaja Murni

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ladangbaja Murni PT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

PT Harapan Duta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Harapan Duta has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, PT Harapan is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Ladangbaja Murni and PT Harapan

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

The idea behind Ladangbaja Murni PT and PT Harapan Duta 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.