Correlation Between Jasuindo Tiga and Island Concepts
Can any of the company-specific risk be diversified away by investing in both Jasuindo Tiga and Island Concepts 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 Jasuindo Tiga and Island Concepts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jasuindo Tiga Perkasa and Island Concepts Indonesia, you can compare the effects of market volatilities on Jasuindo Tiga and Island Concepts 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 Jasuindo Tiga with a short position of Island Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasuindo Tiga and Island Concepts.
Diversification Opportunities for Jasuindo Tiga and Island Concepts
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jasuindo and Island is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Jasuindo Tiga Perkasa and Island Concepts Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Island Concepts Indonesia and Jasuindo Tiga 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 Jasuindo Tiga Perkasa are associated (or correlated) with Island Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Island Concepts Indonesia has no effect on the direction of Jasuindo Tiga i.e., Jasuindo Tiga and Island Concepts go up and down completely randomly.
Pair Corralation between Jasuindo Tiga and Island Concepts
Assuming the 90 days trading horizon Jasuindo Tiga Perkasa is expected to generate 0.63 times more return on investment than Island Concepts. However, Jasuindo Tiga Perkasa is 1.58 times less risky than Island Concepts. It trades about 0.01 of its potential returns per unit of risk. Island Concepts Indonesia is currently generating about -0.02 per unit of risk. If you would invest 23,282 in Jasuindo Tiga Perkasa on September 3, 2024 and sell it today you would lose (1,282) from holding Jasuindo Tiga Perkasa or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasuindo Tiga Perkasa vs. Island Concepts Indonesia
Performance |
| Timeline |
| Jasuindo Tiga Perkasa |
| Island Concepts Indonesia |
Jasuindo Tiga and Island Concepts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasuindo Tiga and Island Concepts
The main advantage of trading using opposite Jasuindo Tiga and Island Concepts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasuindo Tiga position performs unexpectedly, Island Concepts 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 Island Concepts will offset losses from the drop in Island Concepts' long position.| Jasuindo Tiga vs. Intanwijaya Internasional Tbk | Jasuindo Tiga vs. Champion Pacific Indonesia | Jasuindo Tiga vs. Mitra Pinasthika Mustika | Jasuindo Tiga vs. Jakarta Int Hotels |
| Island Concepts vs. Indonesian Paradise Property | Island Concepts vs. Inter Delta Tbk | Island Concepts vs. Jakarta Setiabudi Internasional | Island Concepts vs. Fast Food Indonesia |
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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |