Correlation Between Jakarta Int and Tifa Finance
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Tifa Finance 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 Tifa Finance 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 Tifa Finance Tbk, you can compare the effects of market volatilities on Jakarta Int and Tifa Finance 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 Tifa Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Tifa Finance.
Diversification Opportunities for Jakarta Int and Tifa Finance
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jakarta and Tifa is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Tifa Finance Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tifa Finance 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 Tifa Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tifa Finance Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Tifa Finance go up and down completely randomly.
Pair Corralation between Jakarta Int and Tifa Finance
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 33.33 times more return on investment than Tifa Finance. However, Jakarta Int is 33.33 times more volatile than Tifa Finance Tbk. It trades about 0.5 of its potential returns per unit of risk. Tifa Finance Tbk is currently generating about -0.41 per unit of risk. If you would invest 95,000 in Jakarta Int Hotels on September 3, 2024 and sell it today you would earn a total of 150,000 from holding Jakarta Int Hotels or generate 157.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Tifa Finance Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Tifa Finance Tbk |
Jakarta Int and Tifa Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Tifa Finance
The main advantage of trading using opposite Jakarta Int and Tifa Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Tifa Finance 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 Tifa Finance will offset losses from the drop in Tifa Finance's long position.| Jakarta Int vs. Mitra Pinasthika Mustika | Jakarta Int vs. Asuransi Harta Aman | Jakarta Int vs. Indosterling Technomedia Tbk | Jakarta Int vs. Indosat Tbk |
| Tifa Finance vs. Verena Multi Finance | Tifa Finance vs. Trust Finance Indonesia | Tifa Finance vs. Radana Bhaskara Finance | Tifa Finance vs. Wahana Ottomitra Multiartha |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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