Correlation Between Jakarta Int and Eastparc Hotel
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Eastparc Hotel 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 Eastparc Hotel 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 Eastparc Hotel Tbk, you can compare the effects of market volatilities on Jakarta Int and Eastparc Hotel 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 Eastparc Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Eastparc Hotel.
Diversification Opportunities for Jakarta Int and Eastparc Hotel
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Eastparc is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Eastparc Hotel Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastparc Hotel 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 Eastparc Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastparc Hotel Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Eastparc Hotel go up and down completely randomly.
Pair Corralation between Jakarta Int and Eastparc Hotel
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 3.86 times more return on investment than Eastparc Hotel. However, Jakarta Int is 3.86 times more volatile than Eastparc Hotel Tbk. It trades about 0.11 of its potential returns per unit of risk. Eastparc Hotel Tbk is currently generating about -0.04 per unit of risk. If you would invest 39,000 in Jakarta Int Hotels on November 3, 2024 and sell it today you would earn a total of 92,000 from holding Jakarta Int Hotels or generate 235.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Eastparc Hotel Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Eastparc Hotel Tbk |
Jakarta Int and Eastparc Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Eastparc Hotel
The main advantage of trading using opposite Jakarta Int and Eastparc Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Eastparc Hotel 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 Eastparc Hotel will offset losses from the drop in Eastparc Hotel'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 |
| Eastparc Hotel vs. Menteng Heritage Realty | Eastparc Hotel vs. Hotel Fitra International | Eastparc Hotel vs. Jasa Armada Indonesia | Eastparc Hotel vs. Cahayaputra Asa Keramik |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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