Correlation Between PT Jaya and Prima Alloy
Can any of the company-specific risk be diversified away by investing in both PT Jaya and Prima Alloy 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 Prima Alloy 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 Prima Alloy Steel, you can compare the effects of market volatilities on PT Jaya and Prima Alloy 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 Prima Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jaya and Prima Alloy.
Diversification Opportunities for PT Jaya and Prima Alloy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DUCK and Prima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PT Jaya Bersama and Prima Alloy Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prima Alloy Steel 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 Prima Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prima Alloy Steel has no effect on the direction of PT Jaya i.e., PT Jaya and Prima Alloy go up and down completely randomly.
Pair Corralation between PT Jaya and Prima Alloy
If you would invest 9,700 in Prima Alloy Steel on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Prima Alloy Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Jaya Bersama vs. Prima Alloy Steel
Performance |
| Timeline |
| PT Jaya Bersama |
| Prima Alloy Steel |
PT Jaya and Prima Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Jaya and Prima Alloy
The main advantage of trading using opposite PT Jaya and Prima Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jaya position performs unexpectedly, Prima Alloy 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 Prima Alloy will offset losses from the drop in Prima Alloy's long position.| PT Jaya vs. Japfa Comfeed Indonesia | PT Jaya vs. Charoen Pokphand Indonesia | PT Jaya vs. Erajaya Swasembada Tbk | PT Jaya vs. Indofood Cbp Sukses |
| Prima Alloy vs. Pan Brothers Tbk | Prima Alloy vs. Ricky Putra Globalindo | Prima Alloy vs. Asia Pacific Fibers | Prima Alloy vs. Multi Prima Sejahtera |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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