Correlation Between Jasuindo Tiga and Perdana Bangun
Can any of the company-specific risk be diversified away by investing in both Jasuindo Tiga and Perdana Bangun 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 Perdana Bangun 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 Perdana Bangun Pusaka, you can compare the effects of market volatilities on Jasuindo Tiga and Perdana Bangun 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 Perdana Bangun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jasuindo Tiga and Perdana Bangun.
Diversification Opportunities for Jasuindo Tiga and Perdana Bangun
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jasuindo and Perdana is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jasuindo Tiga Perkasa and Perdana Bangun Pusaka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perdana Bangun Pusaka 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 Perdana Bangun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perdana Bangun Pusaka has no effect on the direction of Jasuindo Tiga i.e., Jasuindo Tiga and Perdana Bangun go up and down completely randomly.
Pair Corralation between Jasuindo Tiga and Perdana Bangun
Assuming the 90 days trading horizon Jasuindo Tiga is expected to generate 3.64 times less return on investment than Perdana Bangun. But when comparing it to its historical volatility, Jasuindo Tiga Perkasa is 2.44 times less risky than Perdana Bangun. It trades about 0.01 of its potential returns per unit of risk. Perdana Bangun Pusaka is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 262,000 in Perdana Bangun Pusaka on August 29, 2024 and sell it today you would lose (100,000) from holding Perdana Bangun Pusaka or give up 38.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jasuindo Tiga Perkasa vs. Perdana Bangun Pusaka
Performance |
| Timeline |
| Jasuindo Tiga Perkasa |
| Perdana Bangun Pusaka |
Jasuindo Tiga and Perdana Bangun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jasuindo Tiga and Perdana Bangun
The main advantage of trading using opposite Jasuindo Tiga and Perdana Bangun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jasuindo Tiga position performs unexpectedly, Perdana Bangun 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 Perdana Bangun will offset losses from the drop in Perdana Bangun's long position.| Jasuindo Tiga vs. Jakarta Setiabudi Internasional | Jasuindo Tiga vs. Intraco Penta Tbk | Jasuindo Tiga vs. Multi Indocitra Tbk | Jasuindo Tiga vs. Inter Delta Tbk |
| Perdana Bangun vs. Inter Delta Tbk | Perdana Bangun vs. Jakarta Setiabudi Internasional | Perdana Bangun vs. Modern Internasional Tbk | Perdana Bangun vs. Multi Indocitra 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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