Correlation Between Ace Hardware and PT Jaya
Can any of the company-specific risk be diversified away by investing in both Ace Hardware and PT Jaya 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 Ace Hardware and PT Jaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ace Hardware Indonesia and PT Jaya Bersama, you can compare the effects of market volatilities on Ace Hardware and PT Jaya 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 Ace Hardware with a short position of PT Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ace Hardware and PT Jaya.
Diversification Opportunities for Ace Hardware and PT Jaya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ace and DUCK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ace Hardware Indonesia and PT Jaya Bersama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jaya Bersama and Ace Hardware 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 Ace Hardware Indonesia are associated (or correlated) with PT Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jaya Bersama has no effect on the direction of Ace Hardware i.e., Ace Hardware and PT Jaya go up and down completely randomly.
Pair Corralation between Ace Hardware and PT Jaya
If you would invest 17,600 in PT Jaya Bersama on September 12, 2024 and sell it today you would earn a total of 0.00 from holding PT Jaya Bersama or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ace Hardware Indonesia vs. PT Jaya Bersama
Performance |
| Timeline |
| Ace Hardware Indonesia |
| PT Jaya Bersama |
Ace Hardware and PT Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ace Hardware and PT Jaya
The main advantage of trading using opposite Ace Hardware and PT Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ace Hardware position performs unexpectedly, PT Jaya 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 Jaya will offset losses from the drop in PT Jaya's long position.| Ace Hardware vs. Japfa Comfeed Indonesia | Ace Hardware vs. Charoen Pokphand Indonesia | Ace Hardware vs. Erajaya Swasembada Tbk | Ace Hardware vs. Indofood Cbp Sukses |
| PT Jaya vs. HK Metals Utama | PT Jaya vs. Trinitan Metals and | PT Jaya vs. Ashmore Asset Management | PT Jaya vs. Alumindo Light Metal |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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