Correlation Between Metropolitan Land and Jaya Real
Can any of the company-specific risk be diversified away by investing in both Metropolitan Land and Jaya Real 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 Land and Jaya Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metropolitan Land Tbk and Jaya Real Property, you can compare the effects of market volatilities on Metropolitan Land and Jaya Real 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 Land with a short position of Jaya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Land and Jaya Real.
Diversification Opportunities for Metropolitan Land and Jaya Real
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Metropolitan and Jaya is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Land Tbk and Jaya Real Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Real Property and Metropolitan Land 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 Land Tbk are associated (or correlated) with Jaya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Real Property has no effect on the direction of Metropolitan Land i.e., Metropolitan Land and Jaya Real go up and down completely randomly.
Pair Corralation between Metropolitan Land and Jaya Real
Assuming the 90 days trading horizon Metropolitan Land Tbk is expected to under-perform the Jaya Real. In addition to that, Metropolitan Land is 2.47 times more volatile than Jaya Real Property. It trades about -0.21 of its total potential returns per unit of risk. Jaya Real Property is currently generating about -0.05 per unit of volatility. If you would invest 66,000 in Jaya Real Property on September 1, 2024 and sell it today you would lose (500.00) from holding Jaya Real Property or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Metropolitan Land Tbk vs. Jaya Real Property
Performance |
| Timeline |
| Metropolitan Land Tbk |
| Jaya Real Property |
Metropolitan Land and Jaya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Land and Jaya Real
The main advantage of trading using opposite Metropolitan Land and Jaya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Land position performs unexpectedly, Jaya Real 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 Real will offset losses from the drop in Jaya Real's long position.| Metropolitan Land vs. Jaya Real Property | Metropolitan Land vs. Intiland Development Tbk | Metropolitan Land vs. Modernland Realty Ltd | Metropolitan Land vs. Lippo Cikarang Tbk |
| Jaya Real vs. Lippo Cikarang Tbk | Jaya Real vs. Duta Pertiwi Tbk | Jaya Real vs. Intiland Development Tbk | Jaya Real vs. Mnc Land 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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