Correlation Between Jakarta Int and Trimitra Propertindo
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Trimitra Propertindo 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 Trimitra Propertindo 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 Trimitra Propertindo Tbk, you can compare the effects of market volatilities on Jakarta Int and Trimitra Propertindo 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 Trimitra Propertindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Trimitra Propertindo.
Diversification Opportunities for Jakarta Int and Trimitra Propertindo
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Trimitra is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Trimitra Propertindo Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimitra Propertindo 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 Trimitra Propertindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimitra Propertindo Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Trimitra Propertindo go up and down completely randomly.
Pair Corralation between Jakarta Int and Trimitra Propertindo
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 0.98 times more return on investment than Trimitra Propertindo. However, Jakarta Int Hotels is 1.02 times less risky than Trimitra Propertindo. It trades about 0.13 of its potential returns per unit of risk. Trimitra Propertindo Tbk is currently generating about -0.04 per unit of risk. If you would invest 35,800 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 261,200 from holding Jakarta Int Hotels or generate 729.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Trimitra Propertindo Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Trimitra Propertindo Tbk |
Jakarta Int and Trimitra Propertindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Trimitra Propertindo
The main advantage of trading using opposite Jakarta Int and Trimitra Propertindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Trimitra Propertindo 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 Trimitra Propertindo will offset losses from the drop in Trimitra Propertindo'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 |
| Trimitra Propertindo vs. Lippo Cikarang Tbk | Trimitra Propertindo vs. Lippo Karawaci Tbk | Trimitra Propertindo vs. Mitra Pinasthika Mustika | Trimitra Propertindo vs. Jakarta Int Hotels |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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