Correlation Between Hanson International and Adhi Commuter

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

By analyzing existing cross correlation between Hanson International Tbk and Adhi Commuter Properti, you can compare the effects of market volatilities on Hanson International and Adhi Commuter 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 Hanson International with a short position of Adhi Commuter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanson International and Adhi Commuter.

Diversification Opportunities for Hanson International and Adhi Commuter

0.0

Correlation Coefficient

Hanson International  Adhi Commuter

Pay attention - limited upside

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

Pair Corralation between Hanson International and Adhi Commuter

If you would invest  5,000  in Hanson International Tbk on September 26, 2024 and sell it today you would earn a total of  0.00  from holding Hanson International Tbk or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Hanson International Tbk  vs.  Adhi Commuter Properti

Hanson International Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

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

Adhi Commuter Properti

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hanson International and Adhi Commuter

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

The idea behind Hanson International Tbk and Adhi Commuter Properti 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.

Check out your portfolio center.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.