Correlation Between Jakarta Int and Akr Corporindo
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Akr Corporindo 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 Akr Corporindo 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 Akr Corporindo Tbk, you can compare the effects of market volatilities on Jakarta Int and Akr Corporindo 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 Akr Corporindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Akr Corporindo.
Diversification Opportunities for Jakarta Int and Akr Corporindo
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Akr is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Akr Corporindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akr Corporindo 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 Akr Corporindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akr Corporindo Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Akr Corporindo go up and down completely randomly.
Pair Corralation between Jakarta Int and Akr Corporindo
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 4.66 times more return on investment than Akr Corporindo. However, Jakarta Int is 4.66 times more volatile than Akr Corporindo Tbk. It trades about 0.32 of its potential returns per unit of risk. Akr Corporindo Tbk is currently generating about -0.05 per unit of risk. If you would invest 34,600 in Jakarta Int Hotels on September 12, 2024 and sell it today you would earn a total of 151,400 from holding Jakarta Int Hotels or generate 437.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Akr Corporindo Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Akr Corporindo Tbk |
Jakarta Int and Akr Corporindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Akr Corporindo
The main advantage of trading using opposite Jakarta Int and Akr Corporindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Akr Corporindo 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 Akr Corporindo will offset losses from the drop in Akr Corporindo's long position.| Jakarta Int vs. Jaya Real Property | Jakarta Int vs. Mnc Land Tbk | Jakarta Int vs. Kawasan Industri Jababeka | Jakarta Int vs. Duta Pertiwi Tbk |
| Akr Corporindo vs. PT Indonesia Kendaraan | Akr Corporindo vs. Surya Toto Indonesia | Akr Corporindo vs. Mitra Pinasthika Mustika | Akr Corporindo vs. Integra Indocabinet 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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