Correlation Between Jakarta Int and Trias Sentosa
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Trias Sentosa 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 Trias Sentosa 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 Trias Sentosa Tbk, you can compare the effects of market volatilities on Jakarta Int and Trias Sentosa 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 Trias Sentosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Trias Sentosa.
Diversification Opportunities for Jakarta Int and Trias Sentosa
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jakarta and Trias is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Trias Sentosa Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trias Sentosa 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 Trias Sentosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trias Sentosa Tbk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Trias Sentosa go up and down completely randomly.
Pair Corralation between Jakarta Int and Trias Sentosa
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to under-perform the Trias Sentosa. In addition to that, Jakarta Int is 4.67 times more volatile than Trias Sentosa Tbk. It trades about -0.34 of its total potential returns per unit of risk. Trias Sentosa Tbk is currently generating about -0.48 per unit of volatility. If you would invest 57,000 in Trias Sentosa Tbk on December 1, 2024 and sell it today you would lose (7,000) from holding Trias Sentosa Tbk or give up 12.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jakarta Int Hotels vs. Trias Sentosa Tbk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Trias Sentosa Tbk |
Jakarta Int and Trias Sentosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Trias Sentosa
The main advantage of trading using opposite Jakarta Int and Trias Sentosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Trias Sentosa 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 Trias Sentosa will offset losses from the drop in Trias Sentosa'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 |
| Trias Sentosa vs. Suparma Tbk | Trias Sentosa vs. Champion Pacific Indonesia | Trias Sentosa vs. Indo Acidatama Tbk | Trias Sentosa vs. Unggul Indah Cahaya |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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