Correlation Between Pelayaran Nelly and PT Hasnur

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

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

Diversification Opportunities for Pelayaran Nelly and PT Hasnur

0.19

Correlation Coefficient

Pelayaran Nelly  PT Hasnur

Average diversification

The 3 months correlation between Pelayaran and HAIS is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and PT Hasnur Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hasnur Internasional and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with PT Hasnur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hasnur Internasional has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and PT Hasnur go up and down completely randomly.

Pair Corralation between Pelayaran Nelly and PT Hasnur

Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to under-perform the PT Hasnur. But the stock apears to be less risky and, when comparing its historical volatility, Pelayaran Nelly Dwi is 1.77 times less risky than PT Hasnur. The stock trades about -0.02 of its potential returns per unit of risk. The PT Hasnur Internasional is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  21,600  in PT Hasnur Internasional on September 14, 2024 and sell it today you would earn a total of  200.00  from holding PT Hasnur Internasional or generate 0.93% return on investment over 90 days.

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

Pelayaran Nelly Dwi  vs.  PT Hasnur Internasional

Pelayaran Nelly Dwi

Risk-Adjusted Performance

0 of 100

Very Weak

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

PT Hasnur Internasional

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hasnur Internasional are ranked lower than 1 (%) 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.

Pair Trading with Pelayaran Nelly and PT Hasnur

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

The idea behind Pelayaran Nelly Dwi and PT Hasnur Internasional 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 Stocks Directory module to find actively traded stocks across global markets.