Correlation Between Jakarta Int and Link Net
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Link Net 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 Link Net 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 Link Net Tbk, you can compare the effects of market volatilities on Jakarta Int and Link Net 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 Link Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Link Net.
Diversification Opportunities for Jakarta Int and Link Net
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jakarta and Link is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Link Net Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Net 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 Link Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Net Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Link Net go up and down completely randomly.
Pair Corralation between Jakarta Int and Link Net
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 3.48 times more return on investment than Link Net. However, Jakarta Int is 3.48 times more volatile than Link Net Tbk. It trades about 0.35 of its potential returns per unit of risk. Link Net Tbk is currently generating about -0.04 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 5, 2024 and sell it today you would earn a total of 106,000 from holding Jakarta Int Hotels or generate 111.58% 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. Link Net Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Link Net Tbk |
Jakarta Int and Link Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Link Net
The main advantage of trading using opposite Jakarta Int and Link Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Link Net 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 Link Net will offset losses from the drop in Link Net's long position.| Jakarta Int vs. Asuransi Harta Aman | Jakarta Int vs. Indosterling Technomedia Tbk | Jakarta Int vs. Indosat Tbk | Jakarta Int vs. Bank Negara Indonesia |
| Link Net vs. Energi Mega Persada | Link Net vs. Mitra Pinasthika Mustika | Link Net vs. Jakarta Int Hotels | Link Net 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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