Correlation Between Japfa Comfeed and Erajaya Swasembada
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and Erajaya Swasembada 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 Erajaya Swasembada 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 Erajaya Swasembada Tbk, you can compare the effects of market volatilities on Japfa Comfeed and Erajaya Swasembada 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 Erajaya Swasembada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and Erajaya Swasembada.
Diversification Opportunities for Japfa Comfeed and Erajaya Swasembada
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japfa and Erajaya is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and Erajaya Swasembada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erajaya Swasembada Tbk 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 Erajaya Swasembada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erajaya Swasembada Tbk has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and Erajaya Swasembada go up and down completely randomly.
Pair Corralation between Japfa Comfeed and Erajaya Swasembada
Assuming the 90 days trading horizon Japfa Comfeed Indonesia is expected to generate 0.89 times more return on investment than Erajaya Swasembada. However, Japfa Comfeed Indonesia is 1.12 times less risky than Erajaya Swasembada. It trades about 0.08 of its potential returns per unit of risk. Erajaya Swasembada Tbk is currently generating about 0.01 per unit of risk. If you would invest 101,377 in Japfa Comfeed Indonesia on August 31, 2024 and sell it today you would earn a total of 70,623 from holding Japfa Comfeed Indonesia or generate 69.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Japfa Comfeed Indonesia vs. Erajaya Swasembada Tbk
Performance |
| Timeline |
| Japfa Comfeed Indonesia |
| Erajaya Swasembada Tbk |
Japfa Comfeed and Erajaya Swasembada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japfa Comfeed and Erajaya Swasembada
The main advantage of trading using opposite Japfa Comfeed and Erajaya Swasembada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, Erajaya Swasembada 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 Erajaya Swasembada will offset losses from the drop in Erajaya Swasembada'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 |
| Erajaya Swasembada vs. Multipolar Tbk | Erajaya Swasembada vs. Astra Graphia Tbk | Erajaya Swasembada vs. Matahari Putra Prima | Erajaya Swasembada vs. Ramayana Lestari Sentosa |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |