Correlation Between Jaya Real and Fortune Mate
Can any of the company-specific risk be diversified away by investing in both Jaya Real and Fortune Mate 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 Fortune Mate 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 Fortune Mate Indonesia, you can compare the effects of market volatilities on Jaya Real and Fortune Mate 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 Fortune Mate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Real and Fortune Mate.
Diversification Opportunities for Jaya Real and Fortune Mate
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jaya and Fortune is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Real Property and Fortune Mate Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortune Mate Indonesia 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 Fortune Mate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortune Mate Indonesia has no effect on the direction of Jaya Real i.e., Jaya Real and Fortune Mate go up and down completely randomly.
Pair Corralation between Jaya Real and Fortune Mate
Assuming the 90 days trading horizon Jaya Real is expected to generate 66.3 times less return on investment than Fortune Mate. But when comparing it to its historical volatility, Jaya Real Property is 18.26 times less risky than Fortune Mate. It trades about 0.13 of its potential returns per unit of risk. Fortune Mate Indonesia is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 24,000 in Fortune Mate Indonesia on August 27, 2024 and sell it today you would earn a total of 30,500 from holding Fortune Mate Indonesia or generate 127.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Jaya Real Property vs. Fortune Mate Indonesia
Performance |
| Timeline |
| Jaya Real Property |
| Fortune Mate Indonesia |
Jaya Real and Fortune Mate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Real and Fortune Mate
The main advantage of trading using opposite Jaya Real and Fortune Mate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Real position performs unexpectedly, Fortune Mate 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 Fortune Mate will offset losses from the drop in Fortune Mate'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 |
| Fortune Mate vs. Puradelta Lestari PT | Fortune Mate vs. Lippo Cikarang Tbk | Fortune Mate vs. Bekasi Asri Pemula |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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