Correlation Between Jakarta Int and Austindo Nusantara
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Austindo Nusantara 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 Austindo Nusantara 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 Austindo Nusantara Jaya, you can compare the effects of market volatilities on Jakarta Int and Austindo Nusantara 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 Austindo Nusantara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Austindo Nusantara.
Diversification Opportunities for Jakarta Int and Austindo Nusantara
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jakarta and Austindo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Austindo Nusantara Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austindo Nusantara Jaya 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 Austindo Nusantara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austindo Nusantara Jaya has no effect on the direction of Jakarta Int i.e., Jakarta Int and Austindo Nusantara go up and down completely randomly.
Pair Corralation between Jakarta Int and Austindo Nusantara
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 7.2 times more return on investment than Austindo Nusantara. However, Jakarta Int is 7.2 times more volatile than Austindo Nusantara Jaya. It trades about 0.43 of its potential returns per unit of risk. Austindo Nusantara Jaya is currently generating about 0.09 per unit of risk. If you would invest 33,200 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 263,800 from holding Jakarta Int Hotels or generate 794.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Austindo Nusantara Jaya
Performance |
| Timeline |
| Jakarta Int Hotels |
| Austindo Nusantara Jaya |
Jakarta Int and Austindo Nusantara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Austindo Nusantara
The main advantage of trading using opposite Jakarta Int and Austindo Nusantara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Austindo Nusantara 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 Austindo Nusantara will offset losses from the drop in Austindo Nusantara'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 |
| Austindo Nusantara vs. Bank BRISyariah Tbk | Austindo Nusantara vs. Mitra Pinasthika Mustika | Austindo Nusantara vs. Jakarta Int Hotels | Austindo Nusantara vs. Indosterling Technomedia 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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