Correlation Between Jakarta Int and Acset Indonusa
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Acset Indonusa 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 Jakarta Int and Acset Indonusa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jakarta Int Hotels and Acset Indonusa Tbk, you can compare the effects of market volatilities on Jakarta Int and Acset Indonusa 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 Jakarta Int with a short position of Acset Indonusa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Acset Indonusa.
Diversification Opportunities for Jakarta Int and Acset Indonusa
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Acset is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Acset Indonusa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acset Indonusa Tbk and Jakarta Int 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 Jakarta Int Hotels are associated (or correlated) with Acset Indonusa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acset Indonusa Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Acset Indonusa go up and down completely randomly.
Pair Corralation between Jakarta Int and Acset Indonusa
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 6.44 times more return on investment than Acset Indonusa. However, Jakarta Int is 6.44 times more volatile than Acset Indonusa Tbk. It trades about 0.35 of its potential returns per unit of risk. Acset Indonusa Tbk is currently generating about -0.14 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 5, 2024 and sell it today you would earn a total of 106,000 from holding Jakarta Int Hotels or generate 111.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Acset Indonusa Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Acset Indonusa Tbk |
Jakarta Int and Acset Indonusa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Acset Indonusa
The main advantage of trading using opposite Jakarta Int and Acset Indonusa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Acset Indonusa 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 Acset Indonusa will offset losses from the drop in Acset Indonusa's long position.| Jakarta Int vs. Asuransi Harta Aman | Jakarta Int vs. Indosterling Technomedia Tbk | Jakarta Int vs. Indosat Tbk | Jakarta Int vs. Bank Negara Indonesia |
| Acset Indonusa vs. Bekasi Fajar Industrial | Acset Indonusa vs. Nusa Raya Cipta | Acset Indonusa vs. Wijaya Karya Beton | Acset Indonusa vs. Agung Podomoro Land |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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