Correlation Between Jakarta Int and Mitra Keluarga
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Mitra Keluarga 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 Mitra Keluarga 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 Mitra Keluarga Karyasehat, you can compare the effects of market volatilities on Jakarta Int and Mitra Keluarga 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 Mitra Keluarga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Mitra Keluarga.
Diversification Opportunities for Jakarta Int and Mitra Keluarga
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Mitra is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Mitra Keluarga Karyasehat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitra Keluarga Karyasehat 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 Mitra Keluarga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitra Keluarga Karyasehat has no effect on the direction of Jakarta Int i.e., Jakarta Int and Mitra Keluarga go up and down completely randomly.
Pair Corralation between Jakarta Int and Mitra Keluarga
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 6.43 times more return on investment than Mitra Keluarga. However, Jakarta Int is 6.43 times more volatile than Mitra Keluarga Karyasehat. It trades about 0.48 of its potential returns per unit of risk. Mitra Keluarga Karyasehat is currently generating about -0.17 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Mitra Keluarga Karyasehat
Performance |
| Timeline |
| Jakarta Int Hotels |
| Mitra Keluarga Karyasehat |
Jakarta Int and Mitra Keluarga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Mitra Keluarga
The main advantage of trading using opposite Jakarta Int and Mitra Keluarga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Mitra Keluarga 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 Mitra Keluarga will offset losses from the drop in Mitra Keluarga'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 |
| Mitra Keluarga vs. Surya Citra Media | Mitra Keluarga vs. Sawit Sumbermas Sarana | Mitra Keluarga vs. Mitra Pinasthika Mustika | Mitra Keluarga 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |