Correlation Between PT Hetzer and PT Sari

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

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

Diversification Opportunities for PT Hetzer and PT Sari

0.0

Correlation Coefficient

PT Hetzer  PT Sari

Pay attention - limited upside

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

Pair Corralation between PT Hetzer and PT Sari

If you would invest  2,600  in PT Sari Kreasi on September 3, 2024 and sell it today you would earn a total of  500.00  from holding PT Sari Kreasi or generate 19.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PT Hetzer Medical  vs.  PT Sari Kreasi

PT Hetzer Medical

Risk-Adjusted Performance

0 of 100

Very Weak

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

PT Sari Kreasi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PT Sari Kreasi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, PT Sari disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Hetzer and PT Sari

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

The idea behind PT Hetzer Medical and PT Sari Kreasi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.