Correlation Between Jakarta Int and Bank Pembangunan
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Bank Pembangunan 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 Bank Pembangunan 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 Bank Pembangunan Timur, you can compare the effects of market volatilities on Jakarta Int and Bank Pembangunan 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 Bank Pembangunan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Bank Pembangunan.
Diversification Opportunities for Jakarta Int and Bank Pembangunan
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Bank is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Bank Pembangunan Timur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Pembangunan Timur 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 Bank Pembangunan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Pembangunan Timur has no effect on the direction of Jakarta Int i.e., Jakarta Int and Bank Pembangunan go up and down completely randomly.
Pair Corralation between Jakarta Int and Bank Pembangunan
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 4.53 times more return on investment than Bank Pembangunan. However, Jakarta Int is 4.53 times more volatile than Bank Pembangunan Timur. It trades about 0.17 of its potential returns per unit of risk. Bank Pembangunan Timur is currently generating about -0.01 per unit of risk. If you would invest 39,200 in Jakarta Int Hotels on September 4, 2024 and sell it today you would earn a total of 205,800 from holding Jakarta Int Hotels or generate 525.0% 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. Bank Pembangunan Timur
Performance |
| Timeline |
| Jakarta Int Hotels |
| Bank Pembangunan Timur |
Jakarta Int and Bank Pembangunan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Bank Pembangunan
The main advantage of trading using opposite Jakarta Int and Bank Pembangunan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Bank Pembangunan 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 Bank Pembangunan will offset losses from the drop in Bank Pembangunan'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 |
| Bank Pembangunan vs. Bank Jabar | Bank Pembangunan vs. Sido Muncul PT | Bank Pembangunan vs. Bank Negara Indonesia | Bank Pembangunan vs. Bank Tabungan Negara |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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