Correlation Between Jakarta Int and PP Presisi
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and PP Presisi 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 PP Presisi 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 PP Presisi Tbk, you can compare the effects of market volatilities on Jakarta Int and PP Presisi 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 PP Presisi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and PP Presisi.
Diversification Opportunities for Jakarta Int and PP Presisi
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and PPRE is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and PP Presisi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PP Presisi 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 PP Presisi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PP Presisi Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and PP Presisi go up and down completely randomly.
Pair Corralation between Jakarta Int and PP Presisi
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.27 times more return on investment than PP Presisi. However, Jakarta Int is 1.27 times more volatile than PP Presisi Tbk. It trades about 0.12 of its potential returns per unit of risk. PP Presisi Tbk is currently generating about -0.03 per unit of risk. If you would invest 35,800 in Jakarta Int Hotels on September 4, 2024 and sell it today you would earn a total of 209,200 from holding Jakarta Int Hotels or generate 584.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jakarta Int Hotels vs. PP Presisi Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| PP Presisi Tbk |
Jakarta Int and PP Presisi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and PP Presisi
The main advantage of trading using opposite Jakarta Int and PP Presisi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, PP Presisi 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 PP Presisi will offset losses from the drop in PP Presisi'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 |
| PP Presisi vs. Wijaya Karya Bangunan | PP Presisi vs. PP Properti Tbk | PP Presisi vs. Wijaya Karya Beton | PP Presisi vs. Soechi Lines 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |