Correlation Between Jakarta Int and Ultra Jaya
Can any of the company-specific risk be diversified away by investing in both Jakarta Int and Ultra Jaya 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 Ultra Jaya 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 Ultra Jaya Milk, you can compare the effects of market volatilities on Jakarta Int and Ultra Jaya 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 Ultra Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jakarta Int and Ultra Jaya.
Diversification Opportunities for Jakarta Int and Ultra Jaya
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jakarta and Ultra is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jakarta Int Hotels and Ultra Jaya Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Jaya Milk 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 Ultra Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Jaya Milk has no effect on the direction of Jakarta Int i.e., Jakarta Int and Ultra Jaya go up and down completely randomly.
Pair Corralation between Jakarta Int and Ultra Jaya
Assuming the 90 days trading horizon Jakarta Int Hotels is expected to generate 2.2 times more return on investment than Ultra Jaya. However, Jakarta Int is 2.2 times more volatile than Ultra Jaya Milk. It trades about 0.13 of its potential returns per unit of risk. Ultra Jaya Milk is currently generating about 0.04 per unit of risk. If you would invest 35,800 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 261,200 from holding Jakarta Int Hotels or generate 729.61% 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. Ultra Jaya Milk
Performance |
| Timeline |
| Jakarta Int Hotels |
| Ultra Jaya Milk |
Jakarta Int and Ultra Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jakarta Int and Ultra Jaya
The main advantage of trading using opposite Jakarta Int and Ultra Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jakarta Int position performs unexpectedly, Ultra Jaya 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 Ultra Jaya will offset losses from the drop in Ultra Jaya'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 |
| Ultra Jaya vs. Bank BRISyariah Tbk | Ultra Jaya vs. Mitra Pinasthika Mustika | Ultra Jaya vs. Jakarta Int Hotels | Ultra Jaya vs. Indosterling Technomedia Tbk |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |