Correlation Between Erajaya Swasembada and PT Jaya
Can any of the company-specific risk be diversified away by investing in both Erajaya Swasembada and PT Jaya 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 Erajaya Swasembada and PT Jaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erajaya Swasembada Tbk and PT Jaya Bersama, you can compare the effects of market volatilities on Erajaya Swasembada and PT Jaya 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 Erajaya Swasembada with a short position of PT Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erajaya Swasembada and PT Jaya.
Diversification Opportunities for Erajaya Swasembada and PT Jaya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Erajaya and DUCK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erajaya Swasembada Tbk and PT Jaya Bersama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jaya Bersama and Erajaya Swasembada 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 Erajaya Swasembada Tbk are associated (or correlated) with PT Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jaya Bersama has no effect on the direction of Erajaya Swasembada i.e., Erajaya Swasembada and PT Jaya go up and down completely randomly.
Pair Corralation between Erajaya Swasembada and PT Jaya
If you would invest 38,457 in Erajaya Swasembada Tbk on September 3, 2024 and sell it today you would earn a total of 543.00 from holding Erajaya Swasembada Tbk or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erajaya Swasembada Tbk vs. PT Jaya Bersama
Performance |
| Timeline |
| Erajaya Swasembada Tbk |
| PT Jaya Bersama |
Erajaya Swasembada and PT Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erajaya Swasembada and PT Jaya
The main advantage of trading using opposite Erajaya Swasembada and PT Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erajaya Swasembada position performs unexpectedly, PT Jaya 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 Jaya will offset losses from the drop in PT Jaya's long position.| Erajaya Swasembada vs. Astra Graphia Tbk | Erajaya Swasembada vs. Mitra Pinasthika Mustika | Erajaya Swasembada vs. Jakarta Int Hotels | Erajaya Swasembada vs. Asuransi Harta Aman |
| PT Jaya vs. Mitra Pinasthika Mustika | PT Jaya vs. Jakarta Int Hotels | PT Jaya vs. Asuransi Harta Aman | PT Jaya vs. Indosterling Technomedia 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |