Correlation Between Jasnita Telekomindo and Megapower Makmur
Can any of the company-specific risk be diversified away by investing in both Jasnita Telekomindo and Megapower Makmur 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 Megapower Makmur 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 Megapower Makmur TBK, you can compare the effects of market volatilities on Jasnita Telekomindo and Megapower Makmur 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 Megapower Makmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasnita Telekomindo and Megapower Makmur.
Diversification Opportunities for Jasnita Telekomindo and Megapower Makmur
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jasnita and Megapower is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jasnita Telekomindo Tbk and Megapower Makmur TBK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megapower Makmur TBK 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 Megapower Makmur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megapower Makmur TBK has no effect on the direction of Jasnita Telekomindo i.e., Jasnita Telekomindo and Megapower Makmur go up and down completely randomly.
Pair Corralation between Jasnita Telekomindo and Megapower Makmur
Assuming the 90 days trading horizon Jasnita Telekomindo is expected to generate 4.89 times less return on investment than Megapower Makmur. But when comparing it to its historical volatility, Jasnita Telekomindo Tbk is 1.94 times less risky than Megapower Makmur. It trades about 0.02 of its potential returns per unit of risk. Megapower Makmur TBK is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,800 in Megapower Makmur TBK on September 4, 2024 and sell it today you would earn a total of 2,200 from holding Megapower Makmur TBK or generate 37.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasnita Telekomindo Tbk vs. Megapower Makmur TBK
Performance |
| Timeline |
| Jasnita Telekomindo Tbk |
| Megapower Makmur TBK |
Jasnita Telekomindo and Megapower Makmur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasnita Telekomindo and Megapower Makmur
The main advantage of trading using opposite Jasnita Telekomindo and Megapower Makmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasnita Telekomindo position performs unexpectedly, Megapower Makmur 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 Megapower Makmur will offset losses from the drop in Megapower Makmur'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 |
| Megapower Makmur vs. Terregra Asia Energy | Megapower Makmur vs. Bali Towerindo Sentra | Megapower Makmur vs. Sanurhasta Mitra PT | Megapower Makmur vs. Kencana Energi Lestari |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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