Correlation Between Jaya Real and Mega Manunggal
Can any of the company-specific risk be diversified away by investing in both Jaya Real and Mega Manunggal 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 Mega Manunggal 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 Mega Manunggal Property, you can compare the effects of market volatilities on Jaya Real and Mega Manunggal 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 Mega Manunggal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Real and Mega Manunggal.
Diversification Opportunities for Jaya Real and Mega Manunggal
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Mega is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Real Property and Mega Manunggal Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Manunggal Property 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 Mega Manunggal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Manunggal Property has no effect on the direction of Jaya Real i.e., Jaya Real and Mega Manunggal go up and down completely randomly.
Pair Corralation between Jaya Real and Mega Manunggal
Assuming the 90 days trading horizon Jaya Real Property is expected to generate 0.39 times more return on investment than Mega Manunggal. However, Jaya Real Property is 2.54 times less risky than Mega Manunggal. It trades about 0.1 of its potential returns per unit of risk. Mega Manunggal Property is currently generating about 0.03 per unit of risk. If you would invest 42,578 in Jaya Real Property on August 30, 2024 and sell it today you would earn a total of 22,922 from holding Jaya Real Property or generate 53.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jaya Real Property vs. Mega Manunggal Property
Performance |
| Timeline |
| Jaya Real Property |
| Mega Manunggal Property |
Jaya Real and Mega Manunggal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Real and Mega Manunggal
The main advantage of trading using opposite Jaya Real and Mega Manunggal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Real position performs unexpectedly, Mega Manunggal 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 Mega Manunggal will offset losses from the drop in Mega Manunggal'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 |
| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land Tbk |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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