Correlation Between Berkah Prima and Jasnita Telekomindo
Can any of the company-specific risk be diversified away by investing in both Berkah Prima and Jasnita Telekomindo 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 Berkah Prima and Jasnita Telekomindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berkah Prima Perkasa and Jasnita Telekomindo Tbk, you can compare the effects of market volatilities on Berkah Prima and Jasnita Telekomindo 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 Berkah Prima with a short position of Jasnita Telekomindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berkah Prima and Jasnita Telekomindo.
Diversification Opportunities for Berkah Prima and Jasnita Telekomindo
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Berkah and Jasnita is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Berkah Prima Perkasa and Jasnita Telekomindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasnita Telekomindo Tbk and Berkah Prima 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 Berkah Prima Perkasa are associated (or correlated) with Jasnita Telekomindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasnita Telekomindo Tbk has no effect on the direction of Berkah Prima i.e., Berkah Prima and Jasnita Telekomindo go up and down completely randomly.
Pair Corralation between Berkah Prima and Jasnita Telekomindo
Assuming the 90 days trading horizon Berkah Prima Perkasa is expected to generate 0.74 times more return on investment than Jasnita Telekomindo. However, Berkah Prima Perkasa is 1.35 times less risky than Jasnita Telekomindo. It trades about 0.04 of its potential returns per unit of risk. Jasnita Telekomindo Tbk is currently generating about -0.03 per unit of risk. If you would invest 25,101 in Berkah Prima Perkasa on September 12, 2024 and sell it today you would earn a total of 8,299 from holding Berkah Prima Perkasa or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Berkah Prima Perkasa vs. Jasnita Telekomindo Tbk
Performance |
| Timeline |
| Berkah Prima Perkasa |
| Jasnita Telekomindo Tbk |
Berkah Prima and Jasnita Telekomindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berkah Prima and Jasnita Telekomindo
The main advantage of trading using opposite Berkah Prima and Jasnita Telekomindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berkah Prima position performs unexpectedly, Jasnita Telekomindo 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 Jasnita Telekomindo will offset losses from the drop in Jasnita Telekomindo's long position.| Berkah Prima vs. Communication Cable Systems | Berkah Prima vs. Hensel Davest Indonesia | Berkah Prima vs. Arita Prima Indonesia | Berkah Prima vs. Trisula Textile Industries |
| Jasnita Telekomindo vs. Borneo Olah Sarana | Jasnita Telekomindo vs. MNC Vision Networks | Jasnita Telekomindo vs. Alfa Energi Investama | Jasnita Telekomindo vs. Terregra Asia Energy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |