Correlation Between Arthavest Tbk and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Arthavest Tbk and Japfa Comfeed 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 Arthavest Tbk and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arthavest Tbk and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Arthavest Tbk and Japfa Comfeed 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 Arthavest Tbk with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arthavest Tbk and Japfa Comfeed.
Diversification Opportunities for Arthavest Tbk and Japfa Comfeed
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arthavest and Japfa is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Arthavest Tbk and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and Arthavest Tbk 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 Arthavest Tbk are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Arthavest Tbk i.e., Arthavest Tbk and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Arthavest Tbk and Japfa Comfeed
Assuming the 90 days trading horizon Arthavest Tbk is expected to under-perform the Japfa Comfeed. But the stock apears to be less risky and, when comparing its historical volatility, Arthavest Tbk is 1.97 times less risky than Japfa Comfeed. The stock trades about -0.03 of its potential returns per unit of risk. The Japfa Comfeed Indonesia is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 146,805 in Japfa Comfeed Indonesia on September 2, 2024 and sell it today you would earn a total of 24,695 from holding Japfa Comfeed Indonesia or generate 16.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arthavest Tbk vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Arthavest Tbk |
| Japfa Comfeed Indonesia |
Arthavest Tbk and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arthavest Tbk and Japfa Comfeed
The main advantage of trading using opposite Arthavest Tbk and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arthavest Tbk position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Arthavest Tbk vs. Asuransi Bintang Tbk | Arthavest Tbk vs. Pacific Strategic Financial | Arthavest Tbk vs. Maming Enam Sembilan | Arthavest Tbk vs. Asuransi Harta Aman |
| Japfa Comfeed vs. Bank BRISyariah Tbk | Japfa Comfeed vs. Mitra Pinasthika Mustika | Japfa Comfeed vs. Jakarta Int Hotels | Japfa Comfeed vs. Indosterling Technomedia 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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