Correlation Between Jaya Konstruksi and Jaya Real
Can any of the company-specific risk be diversified away by investing in both Jaya Konstruksi and Jaya Real 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 Jaya Konstruksi and Jaya Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Konstruksi Manggala and Jaya Real Property, you can compare the effects of market volatilities on Jaya Konstruksi and Jaya Real 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 Jaya Konstruksi with a short position of Jaya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Konstruksi and Jaya Real.
Diversification Opportunities for Jaya Konstruksi and Jaya Real
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jaya and Jaya is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Konstruksi Manggala and Jaya Real Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Real Property and Jaya Konstruksi 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 Jaya Konstruksi Manggala are associated (or correlated) with Jaya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Real Property has no effect on the direction of Jaya Konstruksi i.e., Jaya Konstruksi and Jaya Real go up and down completely randomly.
Pair Corralation between Jaya Konstruksi and Jaya Real
Assuming the 90 days trading horizon Jaya Konstruksi Manggala is expected to under-perform the Jaya Real. In addition to that, Jaya Konstruksi is 3.63 times more volatile than Jaya Real Property. It trades about -0.11 of its total potential returns per unit of risk. Jaya Real Property is currently generating about 0.13 per unit of volatility. If you would invest 65,500 in Jaya Real Property on August 27, 2024 and sell it today you would earn a total of 1,000.00 from holding Jaya Real Property or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Konstruksi Manggala vs. Jaya Real Property
Performance |
| Timeline |
| Jaya Konstruksi Manggala |
| Jaya Real Property |
Jaya Konstruksi and Jaya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Konstruksi and Jaya Real
The main advantage of trading using opposite Jaya Konstruksi and Jaya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Konstruksi position performs unexpectedly, Jaya Real 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 Jaya Real will offset losses from the drop in Jaya Real's long position.| Jaya Konstruksi vs. Jaya Real Property | Jaya Konstruksi vs. Perdana Gapura Prima | Jaya Konstruksi vs. Jakarta Int Hotels | Jaya Konstruksi vs. Mnc Land Tbk |
| Jaya Real vs. Lippo Cikarang Tbk | Jaya Real vs. Duta Pertiwi Tbk | Jaya Real vs. Intiland Development Tbk | Jaya Real vs. Mnc Land 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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