Correlation Between Jasa Marga and Wijaya Karya
Can any of the company-specific risk be diversified away by investing in both Jasa Marga and Wijaya Karya 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 Wijaya Karya 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 Wijaya Karya Beton, you can compare the effects of market volatilities on Jasa Marga and Wijaya Karya 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 Wijaya Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasa Marga and Wijaya Karya.
Diversification Opportunities for Jasa Marga and Wijaya Karya
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jasa and Wijaya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jasa Marga Tbk and Wijaya Karya Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wijaya Karya Beton 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 Wijaya Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wijaya Karya Beton has no effect on the direction of Jasa Marga i.e., Jasa Marga and Wijaya Karya go up and down completely randomly.
Pair Corralation between Jasa Marga and Wijaya Karya
Assuming the 90 days trading horizon Jasa Marga Tbk is expected to generate 0.39 times more return on investment than Wijaya Karya. However, Jasa Marga Tbk is 2.58 times less risky than Wijaya Karya. It trades about 0.04 of its potential returns per unit of risk. Wijaya Karya Beton is currently generating about 0.0 per unit of risk. If you would invest 332,463 in Jasa Marga Tbk on October 24, 2024 and sell it today you would earn a total of 103,537 from holding Jasa Marga Tbk or generate 31.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.75% |
| Values | Daily Returns |
Jasa Marga Tbk vs. Wijaya Karya Beton
Performance |
| Timeline |
| Jasa Marga Tbk |
| Wijaya Karya Beton |
Jasa Marga and Wijaya Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasa Marga and Wijaya Karya
The main advantage of trading using opposite Jasa Marga and Wijaya Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasa Marga position performs unexpectedly, Wijaya Karya 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 Wijaya Karya will offset losses from the drop in Wijaya Karya'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 |
| Wijaya Karya vs. Adhi Karya Persero | Wijaya Karya vs. Waskita Karya Persero | Wijaya Karya vs. Pembangunan Perumahan PT | Wijaya Karya vs. Jasa Marga 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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