Correlation Between Jakarta Int and Sanurhasta Mitra
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Sanurhasta Mitra 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 Sanurhasta Mitra 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 Sanurhasta Mitra PT, you can compare the effects of market volatilities on Jakarta Int and Sanurhasta Mitra 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 Sanurhasta Mitra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Sanurhasta Mitra.
Diversification Opportunities for Jakarta Int and Sanurhasta Mitra
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jakarta and Sanurhasta is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Sanurhasta Mitra PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanurhasta Mitra 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 Sanurhasta Mitra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanurhasta Mitra has no effect on the direction of Jakarta Int i.e., Jakarta Int and Sanurhasta Mitra go up and down completely randomly.
Pair Corralation between Jakarta Int and Sanurhasta Mitra
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.24 times more return on investment than Sanurhasta Mitra. However, Jakarta Int is 1.24 times more volatile than Sanurhasta Mitra PT. It trades about 0.24 of its potential returns per unit of risk. Sanurhasta Mitra PT is currently generating about 0.08 per unit of risk. If you would invest 37,000 in Jakarta Int Hotels on September 3, 2024 and sell it today you would earn a total of 260,000 from holding Jakarta Int Hotels or generate 702.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Sanurhasta Mitra PT
Performance |
| Timeline |
| Jakarta Int Hotels |
| Sanurhasta Mitra |
Jakarta Int and Sanurhasta Mitra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Sanurhasta Mitra
The main advantage of trading using opposite Jakarta Int and Sanurhasta Mitra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Sanurhasta Mitra 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 Sanurhasta Mitra will offset losses from the drop in Sanurhasta Mitra'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 |
| Sanurhasta Mitra vs. Mitra Pinasthika Mustika | Sanurhasta Mitra vs. Jakarta Int Hotels | Sanurhasta Mitra vs. Asuransi Harta Aman | Sanurhasta Mitra vs. Indosterling Technomedia 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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