Correlation Between Mega Manunggal and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Mega Manunggal 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 Mega Manunggal and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mega Manunggal Property and Jaya Sukses Makmur, you can compare the effects of market volatilities on Mega Manunggal 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 Mega Manunggal with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mega Manunggal and Jaya Sukses.
Diversification Opportunities for Mega Manunggal and Jaya Sukses
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mega and Jaya is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mega Manunggal Property 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 Mega Manunggal 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 Mega Manunggal Property 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 Mega Manunggal i.e., Mega Manunggal and Jaya Sukses go up and down completely randomly.
Pair Corralation between Mega Manunggal and Jaya Sukses
Assuming the 90 days trading horizon Mega Manunggal Property is expected to under-perform the Jaya Sukses. In addition to that, Mega Manunggal is 15.23 times more volatile than Jaya Sukses Makmur. It trades about -0.19 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 September 1, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mega Manunggal Property vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Mega Manunggal Property |
| Jaya Sukses Makmur |
Mega Manunggal and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mega Manunggal and Jaya Sukses
The main advantage of trading using opposite Mega Manunggal and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mega Manunggal 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.| Mega Manunggal vs. Puradelta Lestari PT | Mega Manunggal vs. Jaya Real Property | Mega Manunggal vs. Bekasi Fajar Industrial | Mega Manunggal vs. Metropolitan Land Tbk |
| Jaya Sukses vs. Matahari Department Store | Jaya Sukses vs. Multi Medika Internasional | Jaya Sukses vs. Visi Media Asia | Jaya Sukses vs. Bayan Resources 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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