Correlation Between PT Jaya and Charoen Pokphand
Can any of the company-specific risk be diversified away by investing in both PT Jaya and Charoen Pokphand 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 PT Jaya and Charoen Pokphand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jaya Bersama and Charoen Pokphand Indonesia, you can compare the effects of market volatilities on PT Jaya and Charoen Pokphand 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 PT Jaya with a short position of Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jaya and Charoen Pokphand.
Diversification Opportunities for PT Jaya and Charoen Pokphand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DUCK and Charoen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Jaya Bersama and Charoen Pokphand Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Ind and PT Jaya 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 PT Jaya Bersama are associated (or correlated) with Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Ind has no effect on the direction of PT Jaya i.e., PT Jaya and Charoen Pokphand go up and down completely randomly.
Pair Corralation between PT Jaya and Charoen Pokphand
If you would invest 509,865 in Charoen Pokphand Indonesia on September 12, 2024 and sell it today you would lose (17,865) from holding Charoen Pokphand Indonesia or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.44% |
| Values | Daily Returns |
PT Jaya Bersama vs. Charoen Pokphand Indonesia
Performance |
| Timeline |
| PT Jaya Bersama |
| Charoen Pokphand Ind |
PT Jaya and Charoen Pokphand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jaya and Charoen Pokphand
The main advantage of trading using opposite PT Jaya and Charoen Pokphand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jaya position performs unexpectedly, Charoen Pokphand 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 Charoen Pokphand will offset losses from the drop in Charoen Pokphand's long position.| PT Jaya vs. HK Metals Utama | PT Jaya vs. Trinitan Metals and | PT Jaya vs. Ashmore Asset Management | PT Jaya vs. Alumindo Light Metal |
| Charoen Pokphand vs. Japfa Comfeed Indonesia | Charoen Pokphand vs. Kalbe Farma Tbk | Charoen Pokphand vs. PT Indofood Sukses | Charoen Pokphand vs. Semen Indonesia Persero |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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