Correlation Between Maha Properti and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Maha Properti 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 Maha Properti and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maha Properti Indonesia and Jaya Sukses Makmur, you can compare the effects of market volatilities on Maha Properti 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 Maha Properti with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maha Properti and Jaya Sukses.
Diversification Opportunities for Maha Properti and Jaya Sukses
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maha and Jaya is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Maha Properti Indonesia 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 Maha Properti 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 Maha Properti Indonesia 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 Maha Properti i.e., Maha Properti and Jaya Sukses go up and down completely randomly.
Pair Corralation between Maha Properti and Jaya Sukses
Assuming the 90 days trading horizon Maha Properti Indonesia is expected to generate 15.14 times more return on investment than Jaya Sukses. However, Maha Properti is 15.14 times more volatile than Jaya Sukses Makmur. It trades about 0.03 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.05 per unit of risk. If you would invest 190,000 in Maha Properti Indonesia on September 1, 2024 and sell it today you would earn a total of 11,000 from holding Maha Properti Indonesia or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Maha Properti Indonesia vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Maha Properti Indonesia |
| Jaya Sukses Makmur |
Maha Properti and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maha Properti and Jaya Sukses
The main advantage of trading using opposite Maha Properti and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maha Properti 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.| Maha Properti vs. Pollux Properti Indonesia | Maha Properti vs. Jaya Sukses Makmur | Maha Properti vs. Metropolitan Kentjana Tbk | Maha Properti vs. Pollux Investasi Internasional |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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