Correlation Between Jakarta Int and Indosterling Technomedia
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Indosterling Technomedia 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 Indosterling Technomedia 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 Indosterling Technomedia Tbk, you can compare the effects of market volatilities on Jakarta Int and Indosterling Technomedia 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 Indosterling Technomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Indosterling Technomedia.
Diversification Opportunities for Jakarta Int and Indosterling Technomedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Indosterling is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Indosterling Technomedia Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indosterling Technomedia 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 Indosterling Technomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indosterling Technomedia has no effect on the direction of Jakarta Int i.e., Jakarta Int and Indosterling Technomedia go up and down completely randomly.
Pair Corralation between Jakarta Int and Indosterling Technomedia
If you would invest 95,000 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 202,000 from holding Jakarta Int Hotels or generate 212.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Indosterling Technomedia Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Indosterling Technomedia |
Jakarta Int and Indosterling Technomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Indosterling Technomedia
The main advantage of trading using opposite Jakarta Int and Indosterling Technomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Indosterling Technomedia 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 Indosterling Technomedia will offset losses from the drop in Indosterling Technomedia'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 |
| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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