Correlation Between Jakarta Int and Shield On
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Shield On 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 Shield On 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 Shield On Service, you can compare the effects of market volatilities on Jakarta Int and Shield On 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 Shield On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Shield On.
Diversification Opportunities for Jakarta Int and Shield On
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jakarta and Shield is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Shield On Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shield On Service 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 Shield On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shield On Service has no effect on the direction of Jakarta Int i.e., Jakarta Int and Shield On go up and down completely randomly.
Pair Corralation between Jakarta Int and Shield On
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 1.31 times more return on investment than Shield On. However, Jakarta Int is 1.31 times more volatile than Shield On Service. It trades about 0.62 of its potential returns per unit of risk. Shield On Service is currently generating about -0.08 per unit of risk. If you would invest 49,000 in Jakarta Int Hotels on August 30, 2024 and sell it today you would earn a total of 142,000 from holding Jakarta Int Hotels or generate 289.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Shield On Service
Performance |
| Timeline |
| Jakarta Int Hotels |
| Shield On Service |
Jakarta Int and Shield On Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Shield On
The main advantage of trading using opposite Jakarta Int and Shield On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Shield On 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 Shield On will offset losses from the drop in Shield On'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 |
| Shield On vs. PT Surya Pertiwi | Shield On vs. Satria Mega Kencana | Shield On vs. Multifiling Mitra Indonesia | Shield On vs. Royal Prima PT |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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