Correlation Between Jakarta Int and Mayora Indah
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Mayora Indah 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 Mayora Indah 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 Mayora Indah Tbk, you can compare the effects of market volatilities on Jakarta Int and Mayora Indah 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 Mayora Indah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Mayora Indah.
Diversification Opportunities for Jakarta Int and Mayora Indah
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Mayora is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Mayora Indah Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayora Indah 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 Mayora Indah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayora Indah Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Mayora Indah go up and down completely randomly.
Pair Corralation between Jakarta Int and Mayora Indah
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 2.2 times more return on investment than Mayora Indah. However, Jakarta Int is 2.2 times more volatile than Mayora Indah Tbk. It trades about 0.13 of its potential returns per unit of risk. Mayora Indah Tbk is currently generating about 0.02 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Mayora Indah Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Mayora Indah Tbk |
Jakarta Int and Mayora Indah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Mayora Indah
The main advantage of trading using opposite Jakarta Int and Mayora Indah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Mayora Indah 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 Mayora Indah will offset losses from the drop in Mayora Indah'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 |
| Mayora Indah vs. Bank BRISyariah Tbk | Mayora Indah vs. Mitra Pinasthika Mustika | Mayora Indah vs. Jakarta Int Hotels | Mayora Indah 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |