Correlation Between Jaya Real and Puradelta Lestari
Can any of the company-specific risk be diversified away by investing in both Jaya Real and Puradelta Lestari 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 Real and Puradelta Lestari into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Real Property and Puradelta Lestari PT, you can compare the effects of market volatilities on Jaya Real and Puradelta Lestari 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 Real with a short position of Puradelta Lestari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Real and Puradelta Lestari.
Diversification Opportunities for Jaya Real and Puradelta Lestari
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jaya and Puradelta is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Real Property and Puradelta Lestari PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puradelta Lestari and Jaya Real 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 Real Property are associated (or correlated) with Puradelta Lestari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puradelta Lestari has no effect on the direction of Jaya Real i.e., Jaya Real and Puradelta Lestari go up and down completely randomly.
Pair Corralation between Jaya Real and Puradelta Lestari
Assuming the 90 days trading horizon Jaya Real Property is expected to generate 0.68 times more return on investment than Puradelta Lestari. However, Jaya Real Property is 1.47 times less risky than Puradelta Lestari. It trades about 0.02 of its potential returns per unit of risk. Puradelta Lestari PT is currently generating about -0.01 per unit of risk. If you would invest 64,600 in Jaya Real Property on September 1, 2024 and sell it today you would earn a total of 900.00 from holding Jaya Real Property or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Real Property vs. Puradelta Lestari PT
Performance |
| Timeline |
| Jaya Real Property |
| Puradelta Lestari |
Jaya Real and Puradelta Lestari Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Real and Puradelta Lestari
The main advantage of trading using opposite Jaya Real and Puradelta Lestari positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Real position performs unexpectedly, Puradelta Lestari 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 Puradelta Lestari will offset losses from the drop in Puradelta Lestari's long position.| Jaya Real vs. Lippo Cikarang Tbk | Jaya Real vs. Duta Pertiwi Tbk | Jaya Real vs. Intiland Development Tbk | Jaya Real vs. Mnc Land Tbk |
| Puradelta Lestari vs. Pakuwon Jati Tbk | Puradelta Lestari vs. Sido Muncul PT | Puradelta Lestari vs. Bekasi Fajar Industrial | Puradelta Lestari vs. Bank Pembangunan Timur |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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