Correlation Between Duta Pertiwi and Jaya Real
Can any of the company-specific risk be diversified away by investing in both Duta Pertiwi and Jaya Real 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 Duta Pertiwi and Jaya Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duta Pertiwi Tbk and Jaya Real Property, you can compare the effects of market volatilities on Duta Pertiwi and Jaya Real 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 Duta Pertiwi with a short position of Jaya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duta Pertiwi and Jaya Real.
Diversification Opportunities for Duta Pertiwi and Jaya Real
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duta and Jaya is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Duta Pertiwi Tbk and Jaya Real Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Real Property and Duta Pertiwi 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 Duta Pertiwi Tbk are associated (or correlated) with Jaya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Real Property has no effect on the direction of Duta Pertiwi i.e., Duta Pertiwi and Jaya Real go up and down completely randomly.
Pair Corralation between Duta Pertiwi and Jaya Real
Assuming the 90 days trading horizon Duta Pertiwi is expected to generate 41.96 times less return on investment than Jaya Real. In addition to that, Duta Pertiwi is 2.36 times more volatile than Jaya Real Property. It trades about 0.0 of its total potential returns per unit of risk. Jaya Real Property is currently generating about 0.12 per unit of volatility. If you would invest 45,355 in Jaya Real Property on November 5, 2024 and sell it today you would earn a total of 28,645 from holding Jaya Real Property or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Duta Pertiwi Tbk vs. Jaya Real Property
Performance |
| Timeline |
| Duta Pertiwi Tbk |
| Jaya Real Property |
Duta Pertiwi and Jaya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duta Pertiwi and Jaya Real
The main advantage of trading using opposite Duta Pertiwi and Jaya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duta Pertiwi position performs unexpectedly, Jaya Real 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 Jaya Real will offset losses from the drop in Jaya Real's long position.| Duta Pertiwi vs. Duta Anggada Realty | Duta Pertiwi vs. Intiland Development Tbk | Duta Pertiwi vs. Bhuwanatala Indah Permai | Duta Pertiwi vs. Fortune Mate Indonesia |
| Jaya Real vs. Lippo Cikarang Tbk | Jaya Real vs. Duta Pertiwi Tbk | Jaya Real vs. Intiland Development Tbk | Jaya Real vs. Mnc Land 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |