Correlation Between Jiangsu Expressway and PT Jasa
Can any of the company-specific risk be diversified away by investing in both Jiangsu Expressway and PT Jasa 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 Jiangsu Expressway and PT Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jiangsu Expressway and PT Jasa Marga, you can compare the effects of market volatilities on Jiangsu Expressway and PT Jasa 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 Jiangsu Expressway with a short position of PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Expressway and PT Jasa.
Diversification Opportunities for Jiangsu Expressway and PT Jasa
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and 0JM is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Expressway and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga and Jiangsu Expressway 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 Jiangsu Expressway are associated (or correlated) with PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of Jiangsu Expressway i.e., Jiangsu Expressway and PT Jasa go up and down completely randomly.
Pair Corralation between Jiangsu Expressway and PT Jasa
Assuming the 90 days horizon Jiangsu Expressway is expected to generate 1.79 times less return on investment than PT Jasa. But when comparing it to its historical volatility, Jiangsu Expressway is 1.89 times less risky than PT Jasa. It trades about 0.07 of its potential returns per unit of risk. PT Jasa Marga is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 20.00 in PT Jasa Marga on January 15, 2025 and sell it today you would earn a total of 1.00 from holding PT Jasa Marga or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Expressway vs. PT Jasa Marga
Performance |
| Timeline |
| Jiangsu Expressway |
| PT Jasa Marga |
Jiangsu Expressway and PT Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Expressway and PT Jasa
The main advantage of trading using opposite Jiangsu Expressway and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Expressway position performs unexpectedly, PT Jasa 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 PT Jasa will offset losses from the drop in PT Jasa's long position.| Jiangsu Expressway vs. Emperor Entertainment Hotel | Jiangsu Expressway vs. PETCO HEALTH CLA | Jiangsu Expressway vs. TCL MULTIMEDIA TECH | Jiangsu Expressway vs. Garofalo Health Care |
| PT Jasa vs. Addtech AB | PT Jasa vs. ORMAT TECHNOLOGIES | PT Jasa vs. BioNTech SE | PT Jasa vs. GAZTRTECHNIUADR15EO01 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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