Correlation Between PKSHA TECHNOLOGY and PT Jasa
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and PT Jasa 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 PKSHA TECHNOLOGY and PT Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and PT Jasa Marga, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and PT Jasa 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 PKSHA TECHNOLOGY with a short position of PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and PT Jasa.
Diversification Opportunities for PKSHA TECHNOLOGY and PT Jasa
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PKSHA and 0JM is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and PT Jasa go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and PT Jasa
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.84 times more return on investment than PT Jasa. However, PKSHA TECHNOLOGY is 1.84 times more volatile than PT Jasa Marga. It trades about -0.03 of its potential returns per unit of risk. PT Jasa Marga is currently generating about -0.47 per unit of risk. If you would invest 2,360 in PKSHA TECHNOLOGY INC on September 24, 2024 and sell it today you would lose (60.00) from holding PKSHA TECHNOLOGY INC or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. PT Jasa Marga
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| PT Jasa Marga |
PKSHA TECHNOLOGY and PT Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and PT Jasa
The main advantage of trading using opposite PKSHA TECHNOLOGY and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, PT Jasa 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 Jasa will offset losses from the drop in PT Jasa's long position.| PKSHA TECHNOLOGY vs. Siamgas And Petrochemicals | PKSHA TECHNOLOGY vs. INTERSHOP Communications Aktiengesellschaft | PKSHA TECHNOLOGY vs. AIR PRODCHEMICALS | PKSHA TECHNOLOGY vs. SHIN ETSU CHEMICAL |
| PT Jasa vs. GLG LIFE TECH | PT Jasa vs. PKSHA TECHNOLOGY INC | PT Jasa vs. Virtus Investment Partners | PT Jasa vs. REINET INVESTMENTS SCA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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