Correlation Between MAP Aktif and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both MAP Aktif and Jaya Sukses 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 MAP Aktif and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAP Aktif Adiperkasa and Jaya Sukses Makmur, you can compare the effects of market volatilities on MAP Aktif and Jaya Sukses 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 MAP Aktif with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAP Aktif and Jaya Sukses.
Diversification Opportunities for MAP Aktif and Jaya Sukses
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAP and Jaya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MAP Aktif Adiperkasa and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur and MAP Aktif 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 MAP Aktif Adiperkasa are associated (or correlated) with Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of MAP Aktif i.e., MAP Aktif and Jaya Sukses go up and down completely randomly.
Pair Corralation between MAP Aktif and Jaya Sukses
Assuming the 90 days trading horizon MAP Aktif Adiperkasa is expected to under-perform the Jaya Sukses. In addition to that, MAP Aktif is 4.08 times more volatile than Jaya Sukses Makmur. It trades about -0.09 of its total potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.1 per unit of volatility. If you would invest 102,000 in Jaya Sukses Makmur on November 3, 2024 and sell it today you would earn a total of 1,500 from holding Jaya Sukses Makmur or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAP Aktif Adiperkasa vs. Jaya Sukses Makmur
Performance |
| Timeline |
| MAP Aktif Adiperkasa |
| Jaya Sukses Makmur |
MAP Aktif and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAP Aktif and Jaya Sukses
The main advantage of trading using opposite MAP Aktif and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAP Aktif position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' long position.| MAP Aktif vs. Mitra Adiperkasa Tbk | MAP Aktif vs. Mitra Keluarga Karyasehat | MAP Aktif vs. Medikaloka Hermina PT | MAP Aktif vs. Prodia Widyahusada Tbk |
| Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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