Correlation Between Japfa Comfeed and PT Jaya
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and PT 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 Japfa Comfeed and PT Jaya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japfa Comfeed Indonesia and PT Jaya Bersama, you can compare the effects of market volatilities on Japfa Comfeed and PT 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 Japfa Comfeed with a short position of PT Jaya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and PT Jaya.
Diversification Opportunities for Japfa Comfeed and PT Jaya
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Japfa and DUCK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and PT Jaya Bersama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jaya Bersama and Japfa Comfeed 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 Japfa Comfeed Indonesia are associated (or correlated) with PT Jaya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jaya Bersama has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and PT Jaya go up and down completely randomly.
Pair Corralation between Japfa Comfeed and PT Jaya
If you would invest 130,547 in Japfa Comfeed Indonesia on September 3, 2024 and sell it today you would earn a total of 40,953 from holding Japfa Comfeed Indonesia or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japfa Comfeed Indonesia vs. PT Jaya Bersama
Performance |
| Timeline |
| Japfa Comfeed Indonesia |
| PT Jaya Bersama |
Japfa Comfeed and PT Jaya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japfa Comfeed and PT Jaya
The main advantage of trading using opposite Japfa Comfeed and PT Jaya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, PT 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 PT Jaya will offset losses from the drop in PT Jaya's long position.| Japfa Comfeed vs. Charoen Pokphand Indonesia | Japfa Comfeed vs. Kalbe Farma Tbk | Japfa Comfeed vs. Indofood Cbp Sukses | Japfa Comfeed vs. PT Indofood Sukses |
| PT Jaya vs. Mitra Pinasthika Mustika | PT Jaya vs. Jakarta Int Hotels | PT Jaya vs. Asuransi Harta Aman | PT 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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