Correlation Between Jasnita Telekomindo and Berkah Prima
Can any of the company-specific risk be diversified away by investing in both Jasnita Telekomindo and Berkah Prima 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 Jasnita Telekomindo and Berkah Prima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasnita Telekomindo Tbk and Berkah Prima Perkasa, you can compare the effects of market volatilities on Jasnita Telekomindo and Berkah Prima 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 Jasnita Telekomindo with a short position of Berkah Prima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasnita Telekomindo and Berkah Prima.
Diversification Opportunities for Jasnita Telekomindo and Berkah Prima
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jasnita and Berkah is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Jasnita Telekomindo Tbk and Berkah Prima Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkah Prima Perkasa and Jasnita Telekomindo 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 Jasnita Telekomindo Tbk are associated (or correlated) with Berkah Prima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkah Prima Perkasa has no effect on the direction of Jasnita Telekomindo i.e., Jasnita Telekomindo and Berkah Prima go up and down completely randomly.
Pair Corralation between Jasnita Telekomindo and Berkah Prima
Assuming the 90 days trading horizon Jasnita Telekomindo Tbk is expected to under-perform the Berkah Prima. In addition to that, Jasnita Telekomindo is 1.35 times more volatile than Berkah Prima Perkasa. It trades about -0.03 of its total potential returns per unit of risk. Berkah Prima Perkasa is currently generating about 0.04 per unit of volatility. If you would invest 25,101 in Berkah Prima Perkasa on September 12, 2024 and sell it today you would earn a total of 8,299 from holding Berkah Prima Perkasa or generate 33.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jasnita Telekomindo Tbk vs. Berkah Prima Perkasa
Performance |
| Timeline |
| Jasnita Telekomindo Tbk |
| Berkah Prima Perkasa |
Jasnita Telekomindo and Berkah Prima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasnita Telekomindo and Berkah Prima
The main advantage of trading using opposite Jasnita Telekomindo and Berkah Prima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasnita Telekomindo position performs unexpectedly, Berkah Prima 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 Berkah Prima will offset losses from the drop in Berkah Prima's long position.| Jasnita Telekomindo vs. Borneo Olah Sarana | Jasnita Telekomindo vs. MNC Vision Networks | Jasnita Telekomindo vs. Alfa Energi Investama | Jasnita Telekomindo vs. Terregra Asia Energy |
| Berkah Prima vs. Communication Cable Systems | Berkah Prima vs. Hensel Davest Indonesia | Berkah Prima vs. Arita Prima Indonesia | Berkah Prima vs. Trisula Textile Industries |
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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