Correlation Between PT Hanjaya and Greenlane Holdings

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

Diversification Opportunities for PT Hanjaya and Greenlane Holdings

-0.28

Correlation Coefficient

PT Hanjaya  Greenlane Holdings

Very good diversification

The 3 months correlation between PHJMF and Greenlane is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane 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 Greenlane Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlane Holdings has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Greenlane Holdings go up and down completely randomly.

Pair Corralation between PT Hanjaya and Greenlane Holdings

Assuming the 90 days horizon PT Hanjaya Mandala is expected to under-perform the Greenlane Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, PT Hanjaya Mandala is 1.16 times less risky than Greenlane Holdings. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Greenlane Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  44.00  in Greenlane Holdings on February 2, 2024 and sell it today you would earn a total of  20.20  from holding Greenlane Holdings or generate 45.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

PT Hanjaya Mandala  vs.  Greenlane Holdings

PT Hanjaya Mandala

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hanjaya Mandala are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, PT Hanjaya reported solid returns over the last few months and may actually be approaching a breakup point.

Greenlane Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Greenlane Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating essential indicators, Greenlane Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Hanjaya and Greenlane Holdings

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

The idea behind PT Hanjaya Mandala and Greenlane 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.