Correlation Between Borneo Olah and Jasnita Telekomindo
Can any of the company-specific risk be diversified away by investing in both Borneo Olah 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 Borneo Olah and Jasnita Telekomindo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borneo Olah Sarana and Jasnita Telekomindo Tbk, you can compare the effects of market volatilities on Borneo Olah 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 Borneo Olah with a short position of Jasnita Telekomindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borneo Olah and Jasnita Telekomindo.
Diversification Opportunities for Borneo Olah and Jasnita Telekomindo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Borneo and Jasnita is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Borneo Olah Sarana 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 Borneo Olah 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 Borneo Olah Sarana 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 Borneo Olah i.e., Borneo Olah and Jasnita Telekomindo go up and down completely randomly.
Pair Corralation between Borneo Olah and Jasnita Telekomindo
If you would invest 5,700 in Jasnita Telekomindo Tbk on October 24, 2024 and sell it today you would earn a total of 800.00 from holding Jasnita Telekomindo Tbk or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borneo Olah Sarana vs. Jasnita Telekomindo Tbk
Performance |
| Timeline |
| Borneo Olah Sarana |
| Jasnita Telekomindo Tbk |
Borneo Olah and Jasnita Telekomindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borneo Olah and Jasnita Telekomindo
The main advantage of trading using opposite Borneo Olah and Jasnita Telekomindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borneo Olah 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.| Borneo Olah vs. Alfa Energi Investama | Borneo Olah vs. Atlas Resources Tbk | Borneo Olah vs. Baramulti Suksessarana Tbk | Borneo Olah vs. Kapuas Prima Coal |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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