Correlation Between Jakarta Int and Inocycle Technology
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Inocycle Technology 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 Inocycle Technology 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 Inocycle Technology Tbk, you can compare the effects of market volatilities on Jakarta Int and Inocycle Technology 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 Inocycle Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Inocycle Technology.
Diversification Opportunities for Jakarta Int and Inocycle Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jakarta and Inocycle is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Inocycle Technology Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inocycle Technology 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 Inocycle Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inocycle Technology Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Inocycle Technology go up and down completely randomly.
Pair Corralation between Jakarta Int and Inocycle Technology
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 5.04 times more return on investment than Inocycle Technology. However, Jakarta Int is 5.04 times more volatile than Inocycle Technology Tbk. It trades about 0.64 of its potential returns per unit of risk. Inocycle Technology Tbk is currently generating about -0.23 per unit of risk. If you would invest 61,000 in Jakarta Int Hotels on August 31, 2024 and sell it today you would earn a total of 177,000 from holding Jakarta Int Hotels or generate 290.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Inocycle Technology Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Inocycle Technology Tbk |
Jakarta Int and Inocycle Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Inocycle Technology
The main advantage of trading using opposite Jakarta Int and Inocycle Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Inocycle Technology 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 Inocycle Technology will offset losses from the drop in Inocycle Technology'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 |
| Inocycle Technology vs. MNC Vision Networks | Inocycle Technology vs. Hartadinata Abadi Tbk | Inocycle Technology vs. Kencana Energi Lestari | Inocycle Technology vs. Bali Bintang Sejahtera |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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