Correlation Between Jakarta Int and Intiland Development
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Intiland Development 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 Intiland Development 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 Intiland Development Tbk, you can compare the effects of market volatilities on Jakarta Int and Intiland Development 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 Intiland Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Intiland Development.
Diversification Opportunities for Jakarta Int and Intiland Development
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Intiland is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Intiland Development Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intiland Development 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 Intiland Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intiland Development Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Intiland Development go up and down completely randomly.
Pair Corralation between Jakarta Int and Intiland Development
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 8.0 times more return on investment than Intiland Development. However, Jakarta Int is 8.0 times more volatile than Intiland Development Tbk. It trades about 0.56 of its potential returns per unit of risk. Intiland Development Tbk is currently generating about -0.32 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 202,000 from holding Jakarta Int Hotels or generate 212.63% 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. Intiland Development Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Intiland Development Tbk |
Jakarta Int and Intiland Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Intiland Development
The main advantage of trading using opposite Jakarta Int and Intiland Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Intiland Development 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 Intiland Development will offset losses from the drop in Intiland Development'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 |
| Intiland Development vs. Sentul City Tbk | Intiland Development vs. Modernland Realty Ltd | Intiland Development vs. Kawasan Industri Jababeka | Intiland Development vs. Ciputra Development 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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