Correlation Between Hexindo Adiperkasa and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Hexindo Adiperkasa and Jaya Sukses 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 Hexindo Adiperkasa and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hexindo Adiperkasa Tbk and Jaya Sukses Makmur, you can compare the effects of market volatilities on Hexindo Adiperkasa and Jaya Sukses 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 Hexindo Adiperkasa with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexindo Adiperkasa and Jaya Sukses.
Diversification Opportunities for Hexindo Adiperkasa and Jaya Sukses
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hexindo and Jaya is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hexindo Adiperkasa Tbk and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur and Hexindo Adiperkasa 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 Hexindo Adiperkasa Tbk are associated (or correlated) with Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Hexindo Adiperkasa i.e., Hexindo Adiperkasa and Jaya Sukses go up and down completely randomly.
Pair Corralation between Hexindo Adiperkasa and Jaya Sukses
Assuming the 90 days trading horizon Hexindo Adiperkasa Tbk is expected to under-perform the Jaya Sukses. But the stock apears to be less risky and, when comparing its historical volatility, Hexindo Adiperkasa Tbk is 1.29 times less risky than Jaya Sukses. The stock trades about -0.51 of its potential returns per unit of risk. The Jaya Sukses Makmur is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 106,000 in Jaya Sukses Makmur on November 28, 2024 and sell it today you would lose (6,500) from holding Jaya Sukses Makmur or give up 6.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hexindo Adiperkasa Tbk vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Hexindo Adiperkasa Tbk |
| Jaya Sukses Makmur |
Hexindo Adiperkasa and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hexindo Adiperkasa and Jaya Sukses
The main advantage of trading using opposite Hexindo Adiperkasa and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hexindo Adiperkasa position performs unexpectedly, Jaya Sukses 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 Sukses will offset losses from the drop in Jaya Sukses' long position.| Hexindo Adiperkasa vs. Bisi International Tbk | Hexindo Adiperkasa vs. Sampoerna Agro Tbk | Hexindo Adiperkasa vs. Akr Corporindo Tbk | Hexindo Adiperkasa vs. Solusi Bangun Indonesia |
| Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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