Correlation Between Ictsi Jasa and Jembo Cable
Can any of the company-specific risk be diversified away by investing in both Ictsi Jasa and Jembo Cable 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 Ictsi Jasa and Jembo Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ictsi Jasa Prima and Jembo Cable, you can compare the effects of market volatilities on Ictsi Jasa and Jembo Cable 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 Ictsi Jasa with a short position of Jembo Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ictsi Jasa and Jembo Cable.
Diversification Opportunities for Ictsi Jasa and Jembo Cable
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ictsi and Jembo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ictsi Jasa Prima and Jembo Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jembo Cable and Ictsi Jasa 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 Ictsi Jasa Prima are associated (or correlated) with Jembo Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jembo Cable has no effect on the direction of Ictsi Jasa i.e., Ictsi Jasa and Jembo Cable go up and down completely randomly.
Pair Corralation between Ictsi Jasa and Jembo Cable
Assuming the 90 days trading horizon Ictsi Jasa Prima is expected to under-perform the Jembo Cable. In addition to that, Ictsi Jasa is 4.08 times more volatile than Jembo Cable. It trades about -0.33 of its total potential returns per unit of risk. Jembo Cable is currently generating about -0.04 per unit of volatility. If you would invest 61,500 in Jembo Cable on November 28, 2024 and sell it today you would lose (500.00) from holding Jembo Cable or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ictsi Jasa Prima vs. Jembo Cable
Performance |
| Timeline |
| Ictsi Jasa Prima |
| Jembo Cable |
Ictsi Jasa and Jembo Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ictsi Jasa and Jembo Cable
The main advantage of trading using opposite Ictsi Jasa and Jembo Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ictsi Jasa position performs unexpectedly, Jembo Cable 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 Jembo Cable will offset losses from the drop in Jembo Cable's long position.| Ictsi Jasa vs. Kabelindo Murni Tbk | Ictsi Jasa vs. Jembo Cable | Ictsi Jasa vs. Kedaung Indah Can | Ictsi Jasa vs. Kedawung Setia Industrial |
| Jembo Cable vs. Kabelindo Murni Tbk | Jembo Cable vs. Sumi Indo Kabel | Jembo Cable vs. Kmi Wire And | Jembo Cable vs. Indospring 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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