Correlation Between Arkha Jayanti and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Arkha Jayanti and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Arkha Jayanti and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arkha Jayanti and Hotel Sahid.
Diversification Opportunities for Arkha Jayanti and Hotel Sahid
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arkha and Hotel is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Arkha Jayanti Persada and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Arkha Jayanti i.e., Arkha Jayanti and Hotel Sahid go up and down completely randomly.
Pair Corralation between Arkha Jayanti and Hotel Sahid
Assuming the 90 days trading horizon Arkha Jayanti Persada is expected to generate 0.81 times more return on investment than Hotel Sahid. However, Arkha Jayanti Persada is 1.24 times less risky than Hotel Sahid. It trades about -0.03 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.03 per unit of risk. If you would invest 5,000 in Arkha Jayanti Persada on November 2, 2024 and sell it today you would lose (3,000) from holding Arkha Jayanti Persada or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arkha Jayanti Persada vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Arkha Jayanti Persada |
| Hotel Sahid Jaya |
Arkha Jayanti and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arkha Jayanti and Hotel Sahid
The main advantage of trading using opposite Arkha Jayanti and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arkha Jayanti position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid'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 |
| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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