Correlation Between PT Jobubu and PT Hatten
Can any of the company-specific risk be diversified away by investing in both PT Jobubu and PT Hatten 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 PT Hatten 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 PT Hatten Bali, you can compare the effects of market volatilities on PT Jobubu and PT Hatten 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 PT Hatten. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jobubu and PT Hatten.
Diversification Opportunities for PT Jobubu and PT Hatten
Excellent diversification
The 3 months correlation between BEER and WINE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding PT Jobubu Jarum and PT Hatten Bali in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hatten Bali 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 PT Hatten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hatten Bali has no effect on the direction of PT Jobubu i.e., PT Jobubu and PT Hatten go up and down completely randomly.
Pair Corralation between PT Jobubu and PT Hatten
Assuming the 90 days trading horizon PT Jobubu Jarum is expected to generate 0.57 times more return on investment than PT Hatten. However, PT Jobubu Jarum is 1.74 times less risky than PT Hatten. It trades about -0.13 of its potential returns per unit of risk. PT Hatten Bali is currently generating about -0.1 per unit of risk. If you would invest 18,500 in PT Jobubu Jarum on August 30, 2024 and sell it today you would lose (900.00) from holding PT Jobubu Jarum or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Jobubu Jarum vs. PT Hatten Bali
Performance |
| Timeline |
| PT Jobubu Jarum |
| PT Hatten Bali |
PT Jobubu and PT Hatten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jobubu and PT Hatten
The main advantage of trading using opposite PT Jobubu and PT Hatten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jobubu position performs unexpectedly, PT Hatten 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 Hatten will offset losses from the drop in PT Hatten's long position.| PT Jobubu vs. Alumindo Light Metal | PT Jobubu vs. Pertamina Geothermal Energy | PT Jobubu vs. Indonesian Tobacco Tbk | PT Jobubu vs. Era Media Sejahtera |
| PT Hatten vs. PT Jobubu Jarum | PT Hatten vs. PT Dewi Shri | PT Hatten vs. PT Data Sinergitama | PT Hatten vs. PAM Mineral 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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