Correlation Between Jakarta Int and Prodia Widyahusada
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Prodia Widyahusada 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 Prodia Widyahusada 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 Prodia Widyahusada Tbk, you can compare the effects of market volatilities on Jakarta Int and Prodia Widyahusada 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 Prodia Widyahusada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Prodia Widyahusada.
Diversification Opportunities for Jakarta Int and Prodia Widyahusada
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Prodia is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Prodia Widyahusada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodia Widyahusada 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 Prodia Widyahusada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodia Widyahusada Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Prodia Widyahusada go up and down completely randomly.
Pair Corralation between Jakarta Int and Prodia Widyahusada
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.8 times more return on investment than Prodia Widyahusada. However, Jakarta Int is 1.8 times more volatile than Prodia Widyahusada Tbk. It trades about 0.11 of its potential returns per unit of risk. Prodia Widyahusada Tbk is currently generating about -0.05 per unit of risk. If you would invest 35,800 in Jakarta Int Hotels on September 5, 2024 and sell it today you would earn a total of 165,200 from holding Jakarta Int Hotels or generate 461.45% 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. Prodia Widyahusada Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Prodia Widyahusada Tbk |
Jakarta Int and Prodia Widyahusada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Prodia Widyahusada
The main advantage of trading using opposite Jakarta Int and Prodia Widyahusada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Prodia Widyahusada 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 Prodia Widyahusada will offset losses from the drop in Prodia Widyahusada's long position.| Jakarta Int vs. Asuransi Harta Aman | Jakarta Int vs. Indosterling Technomedia Tbk | Jakarta Int vs. Indosat Tbk | Jakarta Int vs. Bank Negara Indonesia |
| Prodia Widyahusada vs. Surya Citra Media | Prodia Widyahusada vs. Sawit Sumbermas Sarana | Prodia Widyahusada vs. Mitra Pinasthika Mustika | Prodia Widyahusada 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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