Correlation Between PT Hasnur and Semacom Integrated

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

By analyzing existing cross correlation between PT Hasnur Internasional and Semacom Integrated Tbk, you can compare the effects of market volatilities on PT Hasnur and Semacom Integrated 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 Hasnur with a short position of Semacom Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hasnur and Semacom Integrated.

Diversification Opportunities for PT Hasnur and Semacom Integrated

-0.1

Correlation Coefficient

PT Hasnur  Semacom Integrated

Good diversification

The 3 months correlation between HAIS and Semacom is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PT Hasnur Internasional and Semacom Integrated Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semacom Integrated Tbk and PT Hasnur 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 Hasnur Internasional are associated (or correlated) with Semacom Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semacom Integrated Tbk has no effect on the direction of PT Hasnur i.e., PT Hasnur and Semacom Integrated go up and down completely randomly.

Pair Corralation between PT Hasnur and Semacom Integrated

Assuming the 90 days trading horizon PT Hasnur Internasional is expected to generate 0.82 times more return on investment than Semacom Integrated. However, PT Hasnur Internasional is 1.23 times less risky than Semacom Integrated. It trades about 0.03 of its potential returns per unit of risk. Semacom Integrated Tbk is currently generating about -0.15 per unit of risk. If you would invest  21,600  in PT Hasnur Internasional on September 13, 2024 and sell it today you would earn a total of  400.00  from holding PT Hasnur Internasional or generate 1.85% return on investment over 90 days.

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

PT Hasnur Internasional  vs.  Semacom Integrated Tbk

PT Hasnur Internasional

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hasnur Internasional are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, PT Hasnur is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Semacom Integrated Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Semacom Integrated Tbk 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 January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with PT Hasnur and Semacom Integrated

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

The idea behind PT Hasnur Internasional and Semacom Integrated Tbk 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.