Correlation Between PT Hanjaya and Rio2

Can any of the company-specific risk be diversified away by investing in both PT Hanjaya and Rio2 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 Rio2 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 Rio2 Limited, you can compare the effects of market volatilities on PT Hanjaya and Rio2 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 Rio2. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Hanjaya and Rio2.

Diversification Opportunities for PT Hanjaya and Rio2

-0.38

Correlation Coefficient

PT Hanjaya  Rio2

Very good diversification

The 3 months correlation between PHJMF and Rio2 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding PT Hanjaya Mandala and Rio2 Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rio2 Limited 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 Rio2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rio2 Limited has no effect on the direction of PT Hanjaya i.e., PT Hanjaya and Rio2 go up and down completely randomly.

Pair Corralation between PT Hanjaya and Rio2

Assuming the 90 days horizon PT Hanjaya Mandala is expected to under-perform the Rio2. In addition to that, PT Hanjaya is 2.28 times more volatile than Rio2 Limited. It trades about -0.06 of its total potential returns per unit of risk. Rio2 Limited is currently generating about 0.21 per unit of volatility. If you would invest  81.00  in Rio2 Limited on May 26, 2025 and sell it today you would earn a total of  35.00  from holding Rio2 Limited or generate 43.21% return on investment over 90 days.

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

PT Hanjaya Mandala  vs.  Rio2 Limited

PT Hanjaya Mandala

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Hanjaya Mandala has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Rio2 Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rio2 Limited are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Rio2 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PT Hanjaya and Rio2

The main advantage of trading using opposite PT Hanjaya and Rio2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Hanjaya position performs unexpectedly, Rio2 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 Rio2 will offset losses from the drop in Rio2's long position.

The idea behind PT Hanjaya Mandala and Rio2 Limited 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.