Correlation Between Jasa Marga and Bank Jabar
Can any of the company-specific risk be diversified away by investing in both Jasa Marga and Bank Jabar 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 Jasa Marga and Bank Jabar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasa Marga Tbk and Bank Jabar, you can compare the effects of market volatilities on Jasa Marga and Bank Jabar 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 Jasa Marga with a short position of Bank Jabar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasa Marga and Bank Jabar.
Diversification Opportunities for Jasa Marga and Bank Jabar
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jasa and Bank is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jasa Marga Tbk and Bank Jabar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Jabar and Jasa Marga 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 Jasa Marga Tbk are associated (or correlated) with Bank Jabar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Jabar has no effect on the direction of Jasa Marga i.e., Jasa Marga and Bank Jabar go up and down completely randomly.
Pair Corralation between Jasa Marga and Bank Jabar
Assuming the 90 days trading horizon Jasa Marga Tbk is expected to generate 1.58 times more return on investment than Bank Jabar. However, Jasa Marga is 1.58 times more volatile than Bank Jabar. It trades about 0.02 of its potential returns per unit of risk. Bank Jabar is currently generating about -0.06 per unit of risk. If you would invest 468,000 in Jasa Marga Tbk on August 29, 2024 and sell it today you would earn a total of 2,000 from holding Jasa Marga Tbk or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jasa Marga Tbk vs. Bank Jabar
Performance |
| Timeline |
| Jasa Marga Tbk |
| Bank Jabar |
Jasa Marga and Bank Jabar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasa Marga and Bank Jabar
The main advantage of trading using opposite Jasa Marga and Bank Jabar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasa Marga position performs unexpectedly, Bank Jabar 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 Bank Jabar will offset losses from the drop in Bank Jabar's long position.| Jasa Marga vs. Semen Indonesia Persero | Jasa Marga vs. Wijaya Karya Beton | Jasa Marga vs. Perusahaan Gas Negara | Jasa Marga vs. PT Indofood Sukses |
| Bank Jabar vs. Bank Pembangunan Timur | Bank Jabar vs. Bank Tabungan Negara | Bank Jabar vs. Bank Danamon Indonesia | Bank Jabar vs. Bumi Serpong Damai |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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