Correlation Between Jakarta Int and Ever Shine
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Ever Shine 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 Ever Shine 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 Ever Shine Textile, you can compare the effects of market volatilities on Jakarta Int and Ever Shine 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 Ever Shine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Ever Shine.
Diversification Opportunities for Jakarta Int and Ever Shine
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jakarta and Ever is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Ever Shine Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Shine Textile 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 Ever Shine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Shine Textile has no effect on the direction of Jakarta Int i.e., Jakarta Int and Ever Shine go up and down completely randomly.
Pair Corralation between Jakarta Int and Ever Shine
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.72 times more return on investment than Ever Shine. However, Jakarta Int is 1.72 times more volatile than Ever Shine Textile. It trades about 0.17 of its potential returns per unit of risk. Ever Shine Textile is currently generating about 0.0 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Ever Shine Textile
Performance |
| Timeline |
| Jakarta Int Hotels |
| Ever Shine Textile |
Jakarta Int and Ever Shine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Ever Shine
The main advantage of trading using opposite Jakarta Int and Ever Shine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Ever Shine 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 Ever Shine will offset losses from the drop in Ever Shine'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 |
| Ever Shine vs. Eratex Djaja Tbk | Ever Shine vs. Goodyear Indonesia Tbk | Ever Shine vs. PT Century Textile | Ever Shine vs. Sepatu Bata 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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