Correlation Between Jakarta Int and Citatah Tbk
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Citatah Tbk 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 Citatah Tbk 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 Citatah Tbk, you can compare the effects of market volatilities on Jakarta Int and Citatah Tbk 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 Citatah Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Citatah Tbk.
Diversification Opportunities for Jakarta Int and Citatah Tbk
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Citatah is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Citatah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citatah 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 Citatah Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citatah Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Citatah Tbk go up and down completely randomly.
Pair Corralation between Jakarta Int and Citatah Tbk
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.83 times more return on investment than Citatah Tbk. However, Jakarta Int is 1.83 times more volatile than Citatah Tbk. It trades about 0.23 of its potential returns per unit of risk. Citatah Tbk is currently generating about 0.15 per unit of risk. If you would invest 34,400 in Jakarta Int Hotels on September 5, 2024 and sell it today you would earn a total of 166,600 from holding Jakarta Int Hotels or generate 484.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Citatah Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Citatah Tbk |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jakarta Int and Citatah Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Citatah Tbk
The main advantage of trading using opposite Jakarta Int and Citatah Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Citatah Tbk 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 Citatah Tbk will offset losses from the drop in Citatah Tbk'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 |
| Citatah Tbk vs. Equity Development Investment | Citatah Tbk vs. Ciptadana Asset Management | Citatah Tbk vs. Indointernet Tbk PT | Citatah Tbk vs. Intermedia Capital 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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