Correlation Between Jasa Armada and J Resources
Can any of the company-specific risk be diversified away by investing in both Jasa Armada and J Resources 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 Jasa Armada and J Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasa Armada Indonesia and J Resources Asia, you can compare the effects of market volatilities on Jasa Armada and J Resources 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 Jasa Armada with a short position of J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasa Armada and J Resources.
Diversification Opportunities for Jasa Armada and J Resources
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jasa and PSAB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jasa Armada Indonesia and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia and Jasa Armada 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 Jasa Armada Indonesia are associated (or correlated) with J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Jasa Armada i.e., Jasa Armada and J Resources go up and down completely randomly.
Pair Corralation between Jasa Armada and J Resources
Assuming the 90 days trading horizon Jasa Armada Indonesia is expected to generate 0.2 times more return on investment than J Resources. However, Jasa Armada Indonesia is 5.04 times less risky than J Resources. It trades about 0.0 of its potential returns per unit of risk. J Resources Asia is currently generating about -0.02 per unit of risk. If you would invest 27,000 in Jasa Armada Indonesia on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Jasa Armada Indonesia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasa Armada Indonesia vs. J Resources Asia
Performance |
| Timeline |
| Jasa Armada Indonesia |
| J Resources Asia |
Jasa Armada and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasa Armada and J Resources
The main advantage of trading using opposite Jasa Armada and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasa Armada position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' long position.| Jasa Armada vs. PT Indonesia Kendaraan | Jasa Armada vs. PP Presisi Tbk | Jasa Armada vs. Cikarang Listrindo Tbk | Jasa Armada vs. Pelita Samudera Shipping |
| J Resources vs. Merdeka Copper Gold | J Resources vs. Golden Eagle Energy | J Resources vs. Rukun Raharja Tbk | J Resources vs. Wilton Makmur Indonesia |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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