Correlation Between Japfa Comfeed and Hotel Sahid
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and Hotel Sahid 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 Hotel Sahid 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 Hotel Sahid Jaya, you can compare the effects of market volatilities on Japfa Comfeed and Hotel Sahid 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 Hotel Sahid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and Hotel Sahid.
Diversification Opportunities for Japfa Comfeed and Hotel Sahid
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Japfa and Hotel is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and Hotel Sahid Jaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sahid Jaya 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 Hotel Sahid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sahid Jaya has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and Hotel Sahid go up and down completely randomly.
Pair Corralation between Japfa Comfeed and Hotel Sahid
Assuming the 90 days trading horizon Japfa Comfeed Indonesia is expected to generate 0.38 times more return on investment than Hotel Sahid. However, Japfa Comfeed Indonesia is 2.62 times less risky than Hotel Sahid. It trades about 0.08 of its potential returns per unit of risk. Hotel Sahid Jaya is currently generating about -0.02 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 | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Japfa Comfeed Indonesia vs. Hotel Sahid Jaya
Performance |
| Timeline |
| Japfa Comfeed Indonesia |
| Hotel Sahid Jaya |
Japfa Comfeed and Hotel Sahid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japfa Comfeed and Hotel Sahid
The main advantage of trading using opposite Japfa Comfeed and Hotel Sahid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, Hotel Sahid 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 Hotel Sahid will offset losses from the drop in Hotel Sahid'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 |
| Hotel Sahid vs. Japfa Comfeed Indonesia | Hotel Sahid vs. Charoen Pokphand Indonesia | Hotel Sahid vs. Erajaya Swasembada Tbk | Hotel Sahid vs. Indofood Cbp Sukses |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |