Correlation Between Jakarta Int and Perusahaan Gas
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Perusahaan Gas 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 Perusahaan Gas 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 Perusahaan Gas Negara, you can compare the effects of market volatilities on Jakarta Int and Perusahaan Gas 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 Perusahaan Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Perusahaan Gas.
Diversification Opportunities for Jakarta Int and Perusahaan Gas
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jakarta and Perusahaan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Perusahaan Gas Negara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perusahaan Gas Negara 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 Perusahaan Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perusahaan Gas Negara has no effect on the direction of Jakarta Int i.e., Jakarta Int and Perusahaan Gas go up and down completely randomly.
Pair Corralation between Jakarta Int and Perusahaan Gas
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 5.78 times more return on investment than Perusahaan Gas. However, Jakarta Int is 5.78 times more volatile than Perusahaan Gas Negara. It trades about 0.56 of its potential returns per unit of risk. Perusahaan Gas Negara is currently generating about 0.0 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 202,000 from holding Jakarta Int Hotels or generate 212.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Perusahaan Gas Negara
Performance |
| Timeline |
| Jakarta Int Hotels |
| Perusahaan Gas Negara |
Jakarta Int and Perusahaan Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Perusahaan Gas
The main advantage of trading using opposite Jakarta Int and Perusahaan Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Perusahaan Gas 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 Perusahaan Gas will offset losses from the drop in Perusahaan Gas' 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 |
| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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