Correlation Between Jakarta Int and Supra Boga
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Supra Boga 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 Supra Boga 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 Supra Boga Lestari, you can compare the effects of market volatilities on Jakarta Int and Supra Boga 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 Supra Boga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Supra Boga.
Diversification Opportunities for Jakarta Int and Supra Boga
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jakarta and Supra is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Supra Boga Lestari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supra Boga Lestari 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 Supra Boga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supra Boga Lestari has no effect on the direction of Jakarta Int i.e., Jakarta Int and Supra Boga go up and down completely randomly.
Pair Corralation between Jakarta Int and Supra Boga
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 6.72 times more return on investment than Supra Boga. However, Jakarta Int is 6.72 times more volatile than Supra Boga Lestari. It trades about 0.64 of its potential returns per unit of risk. Supra Boga Lestari is currently generating about -0.14 per unit of risk. If you would invest 76,000 in Jakarta Int Hotels on September 1, 2024 and sell it today you would earn a total of 221,000 from holding Jakarta Int Hotels or generate 290.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Supra Boga Lestari
Performance |
| Timeline |
| Jakarta Int Hotels |
| Supra Boga Lestari |
Jakarta Int and Supra Boga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Supra Boga
The main advantage of trading using opposite Jakarta Int and Supra Boga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Supra Boga 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 Supra Boga will offset losses from the drop in Supra Boga's long position.| Jakarta Int vs. Japfa Comfeed Indonesia | Jakarta Int vs. Charoen Pokphand Indonesia | Jakarta Int vs. Erajaya Swasembada Tbk | Jakarta Int vs. Indofood Cbp Sukses |
| Supra Boga vs. Bank BRISyariah Tbk | Supra Boga vs. Mitra Pinasthika Mustika | Supra Boga vs. Jakarta Int Hotels | Supra Boga 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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