Correlation Between PT Hatten and Ashmore Asset

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

By analyzing existing cross correlation between PT Hatten Bali and Ashmore Asset Management, you can compare the effects of market volatilities on PT Hatten and Ashmore Asset 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 Hatten with a short position of Ashmore Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hatten and Ashmore Asset.

Diversification Opportunities for PT Hatten and Ashmore Asset

0.65

Correlation Coefficient

PT Hatten  Ashmore Asset

Poor diversification

The 3 months correlation between WINE and Ashmore is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding PT Hatten Bali and Ashmore Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashmore Asset Management and PT Hatten 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 Hatten Bali are associated (or correlated) with Ashmore Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashmore Asset Management has no effect on the direction of PT Hatten i.e., PT Hatten and Ashmore Asset go up and down completely randomly.

Pair Corralation between PT Hatten and Ashmore Asset

Assuming the 90 days trading horizon PT Hatten Bali is expected to generate 2.54 times more return on investment than Ashmore Asset. However, PT Hatten is 2.54 times more volatile than Ashmore Asset Management. It trades about -0.04 of its potential returns per unit of risk. Ashmore Asset Management is currently generating about -0.21 per unit of risk. If you would invest  30,000  in PT Hatten Bali on December 30, 2024 and sell it today you would lose (6,400) from holding PT Hatten Bali or give up 21.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PT Hatten Bali  vs.  Ashmore Asset Management

PT Hatten Bali

Risk-Adjusted Performance

Very Weak

Over the last 90 days PT Hatten Bali 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ashmore Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ashmore Asset Management 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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PT Hatten and Ashmore Asset

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

The idea behind PT Hatten Bali and Ashmore Asset Management 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 Global Correlations module to find global opportunities by holding instruments from different markets.