Correlation Between Catur Sentosa and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Catur Sentosa 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 Catur Sentosa and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catur Sentosa Adiprana and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Catur Sentosa 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 Catur Sentosa with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catur Sentosa and Japfa Comfeed.
Diversification Opportunities for Catur Sentosa and Japfa Comfeed
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Catur and Japfa is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Catur Sentosa Adiprana 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 Catur Sentosa 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 Catur Sentosa Adiprana 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 Catur Sentosa i.e., Catur Sentosa and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Catur Sentosa and Japfa Comfeed
Assuming the 90 days trading horizon Catur Sentosa Adiprana is expected to under-perform the Japfa Comfeed. In addition to that, Catur Sentosa is 1.24 times more volatile than Japfa Comfeed Indonesia. It trades about -0.03 of its total potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about 0.05 per unit of volatility. If you would invest 117,284 in Japfa Comfeed Indonesia on September 3, 2024 and sell it today you would earn a total of 54,216 from holding Japfa Comfeed Indonesia or generate 46.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Catur Sentosa Adiprana vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Catur Sentosa Adiprana |
| Japfa Comfeed Indonesia |
Catur Sentosa and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catur Sentosa and Japfa Comfeed
The main advantage of trading using opposite Catur Sentosa and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catur Sentosa 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.| Catur Sentosa vs. Nusa Konstruksi Enjiniring | Catur Sentosa vs. Bukit Darmo Property | Catur Sentosa vs. Bayu Buana Tbk | Catur Sentosa vs. Astra Graphia Tbk |
| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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