Correlation Between Jakarta Int and Enseval Putra
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Enseval Putra 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 Enseval Putra 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 Enseval Putra Megatrading, you can compare the effects of market volatilities on Jakarta Int and Enseval Putra 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 Enseval Putra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Enseval Putra.
Diversification Opportunities for Jakarta Int and Enseval Putra
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Enseval is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Enseval Putra Megatrading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enseval Putra Megatrading 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 Enseval Putra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enseval Putra Megatrading has no effect on the direction of Jakarta Int i.e., Jakarta Int and Enseval Putra go up and down completely randomly.
Pair Corralation between Jakarta Int and Enseval Putra
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 16.39 times more return on investment than Enseval Putra. However, Jakarta Int is 16.39 times more volatile than Enseval Putra Megatrading. It trades about 0.23 of its potential returns per unit of risk. Enseval Putra Megatrading is currently generating about -0.17 per unit of risk. If you would invest 118,500 in Jakarta Int Hotels on September 12, 2024 and sell it today you would earn a total of 67,500 from holding Jakarta Int Hotels or generate 56.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Enseval Putra Megatrading
Performance |
| Timeline |
| Jakarta Int Hotels |
| Enseval Putra Megatrading |
Jakarta Int and Enseval Putra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Enseval Putra
The main advantage of trading using opposite Jakarta Int and Enseval Putra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Enseval Putra 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 Enseval Putra will offset losses from the drop in Enseval Putra'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 |
| Enseval Putra vs. Mitra Keluarga Karyasehat | Enseval Putra vs. Siloam International Hospitals | Enseval Putra vs. Sumber Alfaria Trijaya | Enseval Putra vs. Elang Mahkota Teknologi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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