Correlation Between Jasa Marga and Timah Persero
Can any of the company-specific risk be diversified away by investing in both Jasa Marga and Timah Persero 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 Timah Persero 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 Timah Persero Tbk, you can compare the effects of market volatilities on Jasa Marga and Timah Persero 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 Timah Persero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasa Marga and Timah Persero.
Diversification Opportunities for Jasa Marga and Timah Persero
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jasa and Timah is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jasa Marga Tbk and Timah Persero Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timah Persero Tbk 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 Timah Persero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timah Persero Tbk has no effect on the direction of Jasa Marga i.e., Jasa Marga and Timah Persero go up and down completely randomly.
Pair Corralation between Jasa Marga and Timah Persero
Assuming the 90 days trading horizon Jasa Marga Tbk is expected to under-perform the Timah Persero. But the stock apears to be less risky and, when comparing its historical volatility, Jasa Marga Tbk is 2.44 times less risky than Timah Persero. The stock trades about -0.14 of its potential returns per unit of risk. The Timah Persero Tbk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 96,000 in Timah Persero Tbk on August 27, 2024 and sell it today you would earn a total of 25,500 from holding Timah Persero Tbk or generate 26.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasa Marga Tbk vs. Timah Persero Tbk
Performance |
| Timeline |
| Jasa Marga Tbk |
| Timah Persero Tbk |
Jasa Marga and Timah Persero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasa Marga and Timah Persero
The main advantage of trading using opposite Jasa Marga and Timah Persero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasa Marga position performs unexpectedly, Timah Persero 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 Timah Persero will offset losses from the drop in Timah Persero'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 |
| Timah Persero vs. Kedaung Indah Can | Timah Persero vs. Langgeng Makmur Industri | Timah Persero vs. Kabelindo Murni Tbk | Timah Persero vs. Mustika Ratu 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |