Correlation Between Japfa Comfeed and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both Japfa Comfeed and Jaya Swarasa 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 Jaya Swarasa 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 Jaya Swarasa Agung, you can compare the effects of market volatilities on Japfa Comfeed and Jaya Swarasa 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 Jaya Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japfa Comfeed and Jaya Swarasa.
Diversification Opportunities for Japfa Comfeed and Jaya Swarasa
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Japfa and Jaya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Japfa Comfeed Indonesia and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung 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 Jaya Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of Japfa Comfeed i.e., Japfa Comfeed and Jaya Swarasa go up and down completely randomly.
Pair Corralation between Japfa Comfeed and Jaya Swarasa
Assuming the 90 days trading horizon Japfa Comfeed Indonesia is expected to generate 1.17 times more return on investment than Jaya Swarasa. However, Japfa Comfeed is 1.17 times more volatile than Jaya Swarasa Agung. It trades about -0.15 of its potential returns per unit of risk. Jaya Swarasa Agung is currently generating about -0.41 per unit of risk. If you would invest 183,000 in Japfa Comfeed Indonesia on August 30, 2024 and sell it today you would lose (12,000) from holding Japfa Comfeed Indonesia or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japfa Comfeed Indonesia vs. Jaya Swarasa Agung
Performance |
| Timeline |
| Japfa Comfeed Indonesia |
| Jaya Swarasa Agung |
Japfa Comfeed and Jaya Swarasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japfa Comfeed and Jaya Swarasa
The main advantage of trading using opposite Japfa Comfeed and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japfa Comfeed position performs unexpectedly, Jaya Swarasa 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 Swarasa will offset losses from the drop in Jaya Swarasa'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 |
| Jaya Swarasa vs. Sentra Food Indonesia | Jaya Swarasa vs. Buyung Poetra Sembada | Jaya Swarasa vs. Garudafood Putra Putri | Jaya Swarasa vs. Campina Ice Cream |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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