Correlation Between PT Hanjaya and CEMEX SAB

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

Diversification Opportunities for PT Hanjaya and CEMEX SAB

0.03

Correlation Coefficient

PT Hanjaya  CEMEX SAB

Significant diversification

The 3 months correlation between PHJMF and CEMEX is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and CEMEX SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMEX SAB de 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 CEMEX SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMEX SAB de has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and CEMEX SAB go up and down completely randomly.

Pair Corralation between PT Hanjaya and CEMEX SAB

Assuming the 90 days horizon PT Hanjaya Mandala is expected to generate 6.37 times more return on investment than CEMEX SAB. However, PT Hanjaya is 6.37 times more volatile than CEMEX SAB de. It trades about 0.08 of its potential returns per unit of risk. CEMEX SAB de is currently generating about 0.24 per unit of risk. If you would invest  6.00  in PT Hanjaya Mandala on May 1, 2025 and sell it today you would lose (0.20) from holding PT Hanjaya Mandala or give up 3.33% of portfolio value over 90 days.

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

PT Hanjaya Mandala  vs.  CEMEX SAB de

PT Hanjaya Mandala

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PT Hanjaya Mandala are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady primary indicators, PT Hanjaya reported solid returns over the last few months and may actually be approaching a breakup point.

CEMEX SAB de

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CEMEX SAB de are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, CEMEX SAB reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Hanjaya and CEMEX SAB

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

The idea behind PT Hanjaya Mandala and CEMEX SAB de 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.