Correlation Between Enseval Putra and PT Janu
Can any of the company-specific risk be diversified away by investing in both Enseval Putra 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 Enseval Putra and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enseval Putra Megatrading and PT Janu Putra, you can compare the effects of market volatilities on Enseval Putra 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 Enseval Putra with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enseval Putra and PT Janu.
Diversification Opportunities for Enseval Putra and PT Janu
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enseval and AYAM is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Enseval Putra Megatrading 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 Enseval Putra 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 Enseval Putra Megatrading 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 Enseval Putra i.e., Enseval Putra and PT Janu go up and down completely randomly.
Pair Corralation between Enseval Putra and PT Janu
Assuming the 90 days trading horizon Enseval Putra is expected to generate 40.05 times less return on investment than PT Janu. But when comparing it to its historical volatility, Enseval Putra Megatrading is 3.18 times less risky than PT Janu. It trades about 0.0 of its potential returns per unit of risk. PT Janu Putra is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,500 in PT Janu Putra on September 12, 2024 and sell it today you would earn a total of 3,500 from holding PT Janu Putra or generate 30.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enseval Putra Megatrading vs. PT Janu Putra
Performance |
| Timeline |
| Enseval Putra Megatrading |
| PT Janu Putra |
Enseval Putra and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enseval Putra and PT Janu
The main advantage of trading using opposite Enseval Putra and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enseval Putra 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.| Enseval Putra vs. Mitra Keluarga Karyasehat | Enseval Putra vs. Siloam International Hospitals | Enseval Putra vs. Sumber Alfaria Trijaya | Enseval Putra vs. Elang Mahkota Teknologi |
| PT Janu vs. Enseval Putra Megatrading | PT Janu vs. Ciptadana Asset Management | PT Janu vs. Equity Development Investment | PT Janu vs. Gunawan Dianjaya Steel |
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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