Correlation Between Jakarta Int and Soechi Lines
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Soechi Lines 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 Soechi Lines 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 Soechi Lines Tbk, you can compare the effects of market volatilities on Jakarta Int and Soechi Lines 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 Soechi Lines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Soechi Lines.
Diversification Opportunities for Jakarta Int and Soechi Lines
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jakarta and Soechi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Soechi Lines Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soechi Lines 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 Soechi Lines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soechi Lines Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Soechi Lines go up and down completely randomly.
Pair Corralation between Jakarta Int and Soechi Lines
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 2.23 times more return on investment than Soechi Lines. However, Jakarta Int is 2.23 times more volatile than Soechi Lines Tbk. It trades about 0.1 of its potential returns per unit of risk. Soechi Lines Tbk is currently generating about 0.0 per unit of risk. If you would invest 35,800 in Jakarta Int Hotels on September 12, 2024 and sell it today you would earn a total of 150,200 from holding Jakarta Int Hotels or generate 419.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Soechi Lines Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Soechi Lines Tbk |
Jakarta Int and Soechi Lines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Soechi Lines
The main advantage of trading using opposite Jakarta Int and Soechi Lines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Soechi Lines 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 Soechi Lines will offset losses from the drop in Soechi Lines' 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 |
| Soechi Lines vs. Harum Energy Tbk | Soechi Lines vs. Delta Dunia Makmur | Soechi Lines vs. Adi Sarana Armada | Soechi Lines vs. Elang Mahkota Teknologi |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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