Correlation Between Perdana Gapura and Jaya Konstruksi
Can any of the company-specific risk be diversified away by investing in both Perdana Gapura and Jaya Konstruksi 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 Perdana Gapura and Jaya Konstruksi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perdana Gapura Prima and Jaya Konstruksi Manggala, you can compare the effects of market volatilities on Perdana Gapura and Jaya Konstruksi 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 Perdana Gapura with a short position of Jaya Konstruksi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perdana Gapura and Jaya Konstruksi.
Diversification Opportunities for Perdana Gapura and Jaya Konstruksi
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Perdana and Jaya is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Perdana Gapura Prima and Jaya Konstruksi Manggala in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Konstruksi Manggala and Perdana Gapura 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 Perdana Gapura Prima are associated (or correlated) with Jaya Konstruksi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Konstruksi Manggala has no effect on the direction of Perdana Gapura i.e., Perdana Gapura and Jaya Konstruksi go up and down completely randomly.
Pair Corralation between Perdana Gapura and Jaya Konstruksi
Assuming the 90 days trading horizon Perdana Gapura Prima is expected to generate 0.68 times more return on investment than Jaya Konstruksi. However, Perdana Gapura Prima is 1.47 times less risky than Jaya Konstruksi. It trades about -0.16 of its potential returns per unit of risk. Jaya Konstruksi Manggala is currently generating about -0.11 per unit of risk. If you would invest 10,000 in Perdana Gapura Prima on August 27, 2024 and sell it today you would lose (500.00) from holding Perdana Gapura Prima or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perdana Gapura Prima vs. Jaya Konstruksi Manggala
Performance |
| Timeline |
| Perdana Gapura Prima |
| Jaya Konstruksi Manggala |
Perdana Gapura and Jaya Konstruksi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perdana Gapura and Jaya Konstruksi
The main advantage of trading using opposite Perdana Gapura and Jaya Konstruksi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perdana Gapura position performs unexpectedly, Jaya Konstruksi 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 Konstruksi will offset losses from the drop in Jaya Konstruksi's long position.| Perdana Gapura vs. Bukit Darmo Property | Perdana Gapura vs. Intiland Development Tbk | Perdana Gapura vs. Bekasi Asri Pemula | Perdana Gapura vs. Duta Anggada Realty |
| Jaya Konstruksi vs. Jaya Real Property | Jaya Konstruksi vs. Perdana Gapura Prima | Jaya Konstruksi vs. Jakarta Int Hotels | Jaya Konstruksi 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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