Correlation Between Intiland Development and J Resources
Can any of the company-specific risk be diversified away by investing in both Intiland Development and J Resources 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 Intiland Development and J Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intiland Development Tbk and J Resources Asia, you can compare the effects of market volatilities on Intiland Development and J Resources 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 Intiland Development with a short position of J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intiland Development and J Resources.
Diversification Opportunities for Intiland Development and J Resources
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intiland and PSAB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Intiland Development Tbk and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia and Intiland Development 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 Intiland Development Tbk are associated (or correlated) with J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Intiland Development i.e., Intiland Development and J Resources go up and down completely randomly.
Pair Corralation between Intiland Development and J Resources
Assuming the 90 days trading horizon Intiland Development Tbk is expected to under-perform the J Resources. But the stock apears to be less risky and, when comparing its historical volatility, Intiland Development Tbk is 2.68 times less risky than J Resources. The stock trades about -0.07 of its potential returns per unit of risk. The J Resources Asia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 23,400 in J Resources Asia on August 28, 2024 and sell it today you would earn a total of 7,000 from holding J Resources Asia or generate 29.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intiland Development Tbk vs. J Resources Asia
Performance |
| Timeline |
| Intiland Development Tbk |
| J Resources Asia |
Intiland Development and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intiland Development and J Resources
The main advantage of trading using opposite Intiland Development and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intiland Development position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' long position.| Intiland Development vs. Sentul City Tbk | Intiland Development vs. Modernland Realty Ltd | Intiland Development vs. Kawasan Industri Jababeka | Intiland Development vs. Ciputra Development Tbk |
| J Resources vs. Kedaung Indah Can | J Resources vs. Langgeng Makmur Industri | J Resources vs. Kabelindo Murni Tbk | J Resources vs. Mustika Ratu 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |