Correlation Between PT Hanjaya and Tytan Holdings

Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Tytan Holdings 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 Tytan Holdings 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 Tytan Holdings, you can compare the effects of market volatilities on PT Hanjaya and Tytan Holdings 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 Tytan Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Tytan Holdings.

Diversification Opportunities for PT Hanjaya and Tytan Holdings

0.62

Correlation Coefficient

PT Hanjaya  Tytan Holdings

Poor diversification

The 3 months correlation between PHJMF and Tytan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Tytan Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tytan Holdings 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 Tytan Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tytan Holdings has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Tytan Holdings go up and down completely randomly.

Pair Corralation between PT Hanjaya and Tytan Holdings

If you would invest  0.02  in Tytan Holdings on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Tytan Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

PT Hanjaya Mandala  vs.  Tytan Holdings

PT Hanjaya Mandala

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Hanjaya Mandala has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Tytan Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Tytan Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Tytan Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Hanjaya and Tytan Holdings

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

The idea behind PT Hanjaya Mandala and Tytan Holdings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.