Correlation Between Dow Jones and PT Janu
Can any of the company-specific risk be diversified away by investing in both Dow Jones and PT Janu 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 Dow Jones and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and PT Janu Putra, you can compare the effects of market volatilities on Dow Jones and PT Janu 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 Dow Jones with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and PT Janu.
Diversification Opportunities for Dow Jones and PT Janu
Very weak diversification
The 3 months correlation between Dow and AYAM is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Dow Jones i.e., Dow Jones and PT Janu go up and down completely randomly.
Pair Corralation between Dow Jones and PT Janu
Assuming the 90 days trading horizon Dow Jones is expected to generate 3.98 times less return on investment than PT Janu. But when comparing it to its historical volatility, Dow Jones Industrial is 4.86 times less risky than PT Janu. It trades about 0.27 of its potential returns per unit of risk. PT Janu Putra is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 12,000 in PT Janu Putra on August 30, 2024 and sell it today you would earn a total of 2,800 from holding PT Janu Putra or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. PT Janu Putra
Performance |
| Timeline |
Dow Jones and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
PT Janu Putra
Pair trading matchups for PT Janu
Pair Trading with Dow Jones and PT Janu
The main advantage of trading using opposite Dow Jones and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, PT Janu 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 Janu will offset losses from the drop in PT Janu's long position.| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
| PT Janu vs. Yelooo Integra Datanet | PT Janu vs. FKS Food Sejahtera | PT Janu vs. Indo Acidatama Tbk | PT Janu vs. Pertamina Geothermal 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |