Correlation Between Arkha Jayanti and Meta Epsi
Can any of the company-specific risk be diversified away by investing in both Arkha Jayanti and Meta Epsi 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 Arkha Jayanti and Meta Epsi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arkha Jayanti Persada and Meta Epsi Tbk, you can compare the effects of market volatilities on Arkha Jayanti and Meta Epsi 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 Arkha Jayanti with a short position of Meta Epsi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkha Jayanti and Meta Epsi.
Diversification Opportunities for Arkha Jayanti and Meta Epsi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arkha and Meta is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Arkha Jayanti Persada and Meta Epsi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Epsi Tbk and Arkha Jayanti 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 Arkha Jayanti Persada are associated (or correlated) with Meta Epsi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Epsi Tbk has no effect on the direction of Arkha Jayanti i.e., Arkha Jayanti and Meta Epsi go up and down completely randomly.
Pair Corralation between Arkha Jayanti and Meta Epsi
Assuming the 90 days trading horizon Arkha Jayanti Persada is expected to generate 1.02 times more return on investment than Meta Epsi. However, Arkha Jayanti is 1.02 times more volatile than Meta Epsi Tbk. It trades about 0.25 of its potential returns per unit of risk. Meta Epsi Tbk is currently generating about -0.22 per unit of risk. If you would invest 1,300 in Arkha Jayanti Persada on September 3, 2024 and sell it today you would earn a total of 300.00 from holding Arkha Jayanti Persada or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkha Jayanti Persada vs. Meta Epsi Tbk
Performance |
| Timeline |
| Arkha Jayanti Persada |
| Meta Epsi Tbk |
Arkha Jayanti and Meta Epsi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkha Jayanti and Meta Epsi
The main advantage of trading using opposite Arkha Jayanti and Meta Epsi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkha Jayanti position performs unexpectedly, Meta Epsi 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 Meta Epsi will offset losses from the drop in Meta Epsi's long position.| Arkha Jayanti vs. Berkah Prima Perkasa | Arkha Jayanti vs. Jasnita Telekomindo Tbk | Arkha Jayanti vs. Darmi Bersaudara Tbk | Arkha Jayanti vs. Agro Yasa Lestari |
| Meta Epsi vs. PP Presisi Tbk | Meta Epsi vs. Bima Sakti Pertiwi | Meta Epsi vs. Nusantara Almazia | Meta Epsi vs. Megapower Makmur TBK |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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