Correlation Between Jakarta Int and Hartadinata Abadi
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Hartadinata Abadi 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 Hartadinata Abadi 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 Hartadinata Abadi Tbk, you can compare the effects of market volatilities on Jakarta Int and Hartadinata Abadi 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 Hartadinata Abadi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Hartadinata Abadi.
Diversification Opportunities for Jakarta Int and Hartadinata Abadi
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Hartadinata is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Hartadinata Abadi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartadinata Abadi 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 Hartadinata Abadi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartadinata Abadi Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Hartadinata Abadi go up and down completely randomly.
Pair Corralation between Jakarta Int and Hartadinata Abadi
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 5.56 times more return on investment than Hartadinata Abadi. However, Jakarta Int is 5.56 times more volatile than Hartadinata Abadi Tbk. It trades about 0.48 of its potential returns per unit of risk. Hartadinata Abadi Tbk is currently generating about -0.55 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 4, 2024 and sell it today you would earn a total of 150,000 from holding Jakarta Int Hotels or generate 157.89% 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. Hartadinata Abadi Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Hartadinata Abadi Tbk |
Jakarta Int and Hartadinata Abadi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Hartadinata Abadi
The main advantage of trading using opposite Jakarta Int and Hartadinata Abadi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Hartadinata Abadi 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 Hartadinata Abadi will offset losses from the drop in Hartadinata Abadi'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 |
| Hartadinata Abadi vs. Jakarta Int Hotels | Hartadinata Abadi vs. Asuransi Harta Aman | Hartadinata Abadi vs. Indosterling Technomedia Tbk | Hartadinata Abadi vs. Indosat 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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