Correlation Between Metropolitan Kentjana and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Metropolitan Kentjana 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 Metropolitan Kentjana and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metropolitan Kentjana Tbk and Jaya Sukses Makmur, you can compare the effects of market volatilities on Metropolitan Kentjana 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 Metropolitan Kentjana with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Kentjana and Jaya Sukses.
Diversification Opportunities for Metropolitan Kentjana and Jaya Sukses
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metropolitan and Jaya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Kentjana Tbk 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 Metropolitan Kentjana 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 Metropolitan Kentjana Tbk 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 Metropolitan Kentjana i.e., Metropolitan Kentjana and Jaya Sukses go up and down completely randomly.
Pair Corralation between Metropolitan Kentjana and Jaya Sukses
Assuming the 90 days trading horizon Metropolitan Kentjana Tbk is expected to under-perform the Jaya Sukses. In addition to that, Metropolitan Kentjana is 8.37 times more volatile than Jaya Sukses Makmur. It trades about -0.25 of its total potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.31 per unit of volatility. If you would invest 99,000 in Jaya Sukses Makmur on August 29, 2024 and sell it today you would earn a total of 1,000.00 from holding Jaya Sukses Makmur or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metropolitan Kentjana Tbk vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Metropolitan Kentjana Tbk |
| Jaya Sukses Makmur |
Metropolitan Kentjana and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Kentjana and Jaya Sukses
The main advantage of trading using opposite Metropolitan Kentjana and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Kentjana 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.| Metropolitan Kentjana vs. Jaya Real Property | Metropolitan Kentjana vs. Metropolitan Land Tbk | Metropolitan Kentjana vs. Duta Pertiwi Tbk | Metropolitan Kentjana vs. Indonesia Prima Property |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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