Correlation Between Intanwijaya Internasional and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Intanwijaya Internasional 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 Intanwijaya Internasional and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intanwijaya Internasional Tbk and Jaya Sukses Makmur, you can compare the effects of market volatilities on Intanwijaya Internasional 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 Intanwijaya Internasional with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intanwijaya Internasional and Jaya Sukses.
Diversification Opportunities for Intanwijaya Internasional and Jaya Sukses
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intanwijaya and Jaya is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Intanwijaya Internasional 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 Intanwijaya Internasional 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 Intanwijaya Internasional 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 Intanwijaya Internasional i.e., Intanwijaya Internasional and Jaya Sukses go up and down completely randomly.
Pair Corralation between Intanwijaya Internasional and Jaya Sukses
Assuming the 90 days trading horizon Intanwijaya Internasional Tbk is expected to generate 4.55 times more return on investment than Jaya Sukses. However, Intanwijaya Internasional is 4.55 times more volatile than Jaya Sukses Makmur. It trades about 0.03 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.06 per unit of risk. If you would invest 49,458 in Intanwijaya Internasional Tbk on September 4, 2024 and sell it today you would earn a total of 8,042 from holding Intanwijaya Internasional Tbk or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Intanwijaya Internasional Tbk vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Intanwijaya Internasional |
| Jaya Sukses Makmur |
Intanwijaya Internasional and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intanwijaya Internasional and Jaya Sukses
The main advantage of trading using opposite Intanwijaya Internasional and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intanwijaya Internasional 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.The idea behind Intanwijaya Internasional Tbk and Jaya Sukses Makmur pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jaya Sukses vs. Intanwijaya Internasional Tbk | Jaya Sukses vs. Champion Pacific Indonesia | Jaya Sukses vs. Mitra Pinasthika Mustika | Jaya Sukses vs. Jakarta Int Hotels |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |