Correlation Between Jakarta Int and Bank Mayapada
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Bank Mayapada 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 Bank Mayapada 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 Bank Mayapada Internasional, you can compare the effects of market volatilities on Jakarta Int and Bank Mayapada 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 Bank Mayapada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Bank Mayapada.
Diversification Opportunities for Jakarta Int and Bank Mayapada
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Bank is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Bank Mayapada Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mayapada Intern 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 Bank Mayapada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mayapada Intern has no effect on the direction of Jakarta Int i.e., Jakarta Int and Bank Mayapada go up and down completely randomly.
Pair Corralation between Jakarta Int and Bank Mayapada
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 0.83 times more return on investment than Bank Mayapada. However, Jakarta Int Hotels is 1.21 times less risky than Bank Mayapada. It trades about 0.17 of its potential returns per unit of risk. Bank Mayapada Internasional is currently generating about 0.0 per unit of risk. If you would invest 39,800 in Jakarta Int Hotels on September 3, 2024 and sell it today you would earn a total of 205,200 from holding Jakarta Int Hotels or generate 515.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Bank Mayapada Internasional
Performance |
| Timeline |
| Jakarta Int Hotels |
| Bank Mayapada Intern |
Jakarta Int and Bank Mayapada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Bank Mayapada
The main advantage of trading using opposite Jakarta Int and Bank Mayapada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Bank Mayapada 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 Bank Mayapada will offset losses from the drop in Bank Mayapada's long position.| Jakarta Int vs. Mitra Pinasthika Mustika | Jakarta Int vs. Asuransi Harta Aman | Jakarta Int vs. Indosterling Technomedia Tbk | Jakarta Int vs. Indosat Tbk |
| Bank Mayapada vs. Bank Mega Tbk | Bank Mayapada vs. Bank Ocbc Nisp | Bank Mayapada vs. Bank Windu Kentjana | Bank Mayapada vs. Bank Artha Graha |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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