Correlation Between Jasnita Telekomindo and Bima Sakti
Can any of the company-specific risk be diversified away by investing in both Jasnita Telekomindo and Bima Sakti 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 Bima Sakti 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 Bima Sakti Pertiwi, you can compare the effects of market volatilities on Jasnita Telekomindo and Bima Sakti 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 Bima Sakti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasnita Telekomindo and Bima Sakti.
Diversification Opportunities for Jasnita Telekomindo and Bima Sakti
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jasnita and Bima is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jasnita Telekomindo Tbk and Bima Sakti Pertiwi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bima Sakti Pertiwi 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 Bima Sakti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bima Sakti Pertiwi has no effect on the direction of Jasnita Telekomindo i.e., Jasnita Telekomindo and Bima Sakti go up and down completely randomly.
Pair Corralation between Jasnita Telekomindo and Bima Sakti
Assuming the 90 days trading horizon Jasnita Telekomindo Tbk is expected to under-perform the Bima Sakti. In addition to that, Jasnita Telekomindo is 1.58 times more volatile than Bima Sakti Pertiwi. It trades about -0.05 of its total potential returns per unit of risk. Bima Sakti Pertiwi is currently generating about -0.05 per unit of volatility. If you would invest 5,200 in Bima Sakti Pertiwi on September 4, 2024 and sell it today you would lose (100.00) from holding Bima Sakti Pertiwi or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jasnita Telekomindo Tbk vs. Bima Sakti Pertiwi
Performance |
| Timeline |
| Jasnita Telekomindo Tbk |
| Bima Sakti Pertiwi |
Jasnita Telekomindo and Bima Sakti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasnita Telekomindo and Bima Sakti
The main advantage of trading using opposite Jasnita Telekomindo and Bima Sakti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasnita Telekomindo position performs unexpectedly, Bima Sakti 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 Bima Sakti will offset losses from the drop in Bima Sakti'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 |
| Bima Sakti vs. Armidian Karyatama Tbk | Bima Sakti vs. J Resources Asia | Bima Sakti vs. Langgeng Makmur Industri | Bima Sakti vs. Mandala Multifinance Tbk |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |