Correlation Between Jaya Konstruksi and Nusa Raya
Can any of the company-specific risk be diversified away by investing in both Jaya Konstruksi and Nusa Raya 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 Nusa Raya 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 Nusa Raya Cipta, you can compare the effects of market volatilities on Jaya Konstruksi and Nusa Raya 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 Nusa Raya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Konstruksi and Nusa Raya.
Diversification Opportunities for Jaya Konstruksi and Nusa Raya
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jaya and Nusa is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Konstruksi Manggala and Nusa Raya Cipta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusa Raya Cipta 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 Nusa Raya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusa Raya Cipta has no effect on the direction of Jaya Konstruksi i.e., Jaya Konstruksi and Nusa Raya go up and down completely randomly.
Pair Corralation between Jaya Konstruksi and Nusa Raya
Assuming the 90 days trading horizon Jaya Konstruksi is expected to generate 1.9 times less return on investment than Nusa Raya. In addition to that, Jaya Konstruksi is 1.55 times more volatile than Nusa Raya Cipta. It trades about 0.02 of its total potential returns per unit of risk. Nusa Raya Cipta is currently generating about 0.06 per unit of volatility. If you would invest 30,135 in Nusa Raya Cipta on September 4, 2024 and sell it today you would earn a total of 5,865 from holding Nusa Raya Cipta or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Konstruksi Manggala vs. Nusa Raya Cipta
Performance |
| Timeline |
| Jaya Konstruksi Manggala |
| Nusa Raya Cipta |
Jaya Konstruksi and Nusa Raya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Konstruksi and Nusa Raya
The main advantage of trading using opposite Jaya Konstruksi and Nusa Raya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Konstruksi position performs unexpectedly, Nusa Raya 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 Nusa Raya will offset losses from the drop in Nusa Raya's long position.| Jaya Konstruksi vs. Jaya Real Property | Jaya Konstruksi vs. Jakarta Int Hotels | Jaya Konstruksi vs. Mnc Land Tbk | Jaya Konstruksi vs. Nusa Konstruksi Enjiniring |
| Nusa Raya vs. Total Bangun Persada | Nusa Raya vs. Surya Semesta Internusa | Nusa Raya vs. Acset Indonusa Tbk | Nusa Raya vs. Mitra Pinasthika Mustika |
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 Stocks Directory module to find actively traded stocks across global markets.
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