Correlation Between PT Hanjaya and Altria

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

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

Diversification Opportunities for PT Hanjaya and Altria

0.0

Correlation Coefficient

PT Hanjaya  Altria

Pay attention - limited upside

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

Pair Corralation between PT Hanjaya and Altria

Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 11.22 times more return on investment than Altria. However, PT Hanjaya is 11.22 times more volatile than Altria Group. It trades about 0.06 of its potential returns per unit of risk. Altria Group is currently generating about 0.13 per unit of risk. If you would invest  3.97  in PT Hanjaya Mandala on December 25, 2024 and sell it today you would earn a total of  0.03  from holding PT Hanjaya Mandala or generate 0.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.92%
Values	Daily Returns

PT Hanjaya Mandala  vs.  Altria Group

PT Hanjaya Mandala

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hanjaya Mandala are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, PT Hanjaya reported solid returns over the last few months and may actually be approaching a breakup point.

Altria Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Altria Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Altria may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with PT Hanjaya and Altria

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

The idea behind PT Hanjaya Mandala and Altria Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..