Correlation Between Jasnita Telekomindo and Citra Borneo
Can any of the company-specific risk be diversified away by investing in both Jasnita Telekomindo and Citra Borneo 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 Citra Borneo 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 Citra Borneo Utama, you can compare the effects of market volatilities on Jasnita Telekomindo and Citra Borneo 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 Citra Borneo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasnita Telekomindo and Citra Borneo.
Diversification Opportunities for Jasnita Telekomindo and Citra Borneo
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jasnita and Citra is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jasnita Telekomindo Tbk and Citra Borneo Utama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citra Borneo Utama 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 Citra Borneo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citra Borneo Utama has no effect on the direction of Jasnita Telekomindo i.e., Jasnita Telekomindo and Citra Borneo go up and down completely randomly.
Pair Corralation between Jasnita Telekomindo and Citra Borneo
Assuming the 90 days trading horizon Jasnita Telekomindo Tbk is expected to generate 3.39 times more return on investment than Citra Borneo. However, Jasnita Telekomindo is 3.39 times more volatile than Citra Borneo Utama. It trades about 0.12 of its potential returns per unit of risk. Citra Borneo Utama is currently generating about 0.34 per unit of risk. If you would invest 5,700 in Jasnita Telekomindo Tbk on October 24, 2024 and sell it today you would earn a total of 800.00 from holding Jasnita Telekomindo Tbk or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Jasnita Telekomindo Tbk vs. Citra Borneo Utama
Performance |
| Timeline |
| Jasnita Telekomindo Tbk |
| Citra Borneo Utama |
Jasnita Telekomindo and Citra Borneo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasnita Telekomindo and Citra Borneo
The main advantage of trading using opposite Jasnita Telekomindo and Citra Borneo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasnita Telekomindo position performs unexpectedly, Citra Borneo 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 Citra Borneo will offset losses from the drop in Citra Borneo'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 |
| Citra Borneo vs. PT Bank Bisnis | Citra Borneo vs. Gunawan Dianjaya Steel | Citra Borneo vs. PT Wahana Interfood | Citra Borneo vs. PT Data Sinergitama |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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