Correlation Between PT Jobubu and Repower Asia
Can any of the company-specific risk be diversified away by investing in both PT Jobubu and Repower Asia 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 PT Jobubu and Repower Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jobubu Jarum and Repower Asia Indonesia, you can compare the effects of market volatilities on PT Jobubu and Repower Asia 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 PT Jobubu with a short position of Repower Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and Repower Asia.
Diversification Opportunities for PT Jobubu and Repower Asia
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BEER and Repower is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and Repower Asia Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repower Asia Indonesia and PT Jobubu 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 PT Jobubu Jarum are associated (or correlated) with Repower Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repower Asia Indonesia has no effect on the direction of PT Jobubu i.e., PT Jobubu and Repower Asia go up and down completely randomly.
Pair Corralation between PT Jobubu and Repower Asia
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to under-perform the Repower Asia. But the stock apears to be less risky and, when comparing its historical volatility, PT Jobubu Jarum is 2.56 times less risky than Repower Asia. The stock trades about -0.11 of its potential returns per unit of risk. The Repower Asia Indonesia is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Repower Asia Indonesia on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Repower Asia Indonesia or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.82% |
| Values | Daily Returns |
PT Jobubu Jarum vs. Repower Asia Indonesia
Performance |
| Timeline |
| PT Jobubu Jarum |
| Repower Asia Indonesia |
PT Jobubu and Repower Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and Repower Asia
The main advantage of trading using opposite PT Jobubu and Repower Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, Repower Asia 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 Repower Asia will offset losses from the drop in Repower Asia's long position.The idea behind PT Jobubu Jarum and Repower Asia Indonesia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Repower Asia vs. PT Wahana Interfood | Repower Asia vs. Fast Food Indonesia | Repower Asia vs. PT Jobubu Jarum | Repower Asia vs. Sentra Food Indonesia |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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