Correlation Between Jasnita Telekomindo and Dewata Freight
Can any of the company-specific risk be diversified away by investing in both Jasnita Telekomindo and Dewata Freight 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 Dewata Freight 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 Dewata Freight International, you can compare the effects of market volatilities on Jasnita Telekomindo and Dewata Freight 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 Dewata Freight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasnita Telekomindo and Dewata Freight.
Diversification Opportunities for Jasnita Telekomindo and Dewata Freight
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jasnita and Dewata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jasnita Telekomindo Tbk and Dewata Freight International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dewata Freight Inter 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 Dewata Freight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dewata Freight Inter has no effect on the direction of Jasnita Telekomindo i.e., Jasnita Telekomindo and Dewata Freight go up and down completely randomly.
Pair Corralation between Jasnita Telekomindo and Dewata Freight
Assuming the 90 days trading horizon Jasnita Telekomindo Tbk is expected to generate 0.56 times more return on investment than Dewata Freight. However, Jasnita Telekomindo Tbk is 1.79 times less risky than Dewata Freight. It trades about 0.0 of its potential returns per unit of risk. Dewata Freight International is currently generating about -0.12 per unit of risk. If you would invest 6,200 in Jasnita Telekomindo Tbk on August 31, 2024 and sell it today you would lose (600.00) from holding Jasnita Telekomindo Tbk or give up 9.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasnita Telekomindo Tbk vs. Dewata Freight International
Performance |
| Timeline |
| Jasnita Telekomindo Tbk |
| Dewata Freight Inter |
Jasnita Telekomindo and Dewata Freight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasnita Telekomindo and Dewata Freight
The main advantage of trading using opposite Jasnita Telekomindo and Dewata Freight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasnita Telekomindo position performs unexpectedly, Dewata Freight 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 Dewata Freight will offset losses from the drop in Dewata Freight'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 |
| Dewata Freight vs. Guna Timur Raya | Dewata Freight vs. Satria Antaran Prima | Dewata Freight vs. Transcoal Pacific Tbk | Dewata Freight vs. Pelayaran Nelly Dwi |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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