Correlation Between Wahana Inti and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both Wahana Inti and Jaya Swarasa 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 Wahana Inti and Jaya Swarasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wahana Inti MakmurTbk and Jaya Swarasa Agung, you can compare the effects of market volatilities on Wahana Inti and Jaya Swarasa 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 Wahana Inti with a short position of Jaya Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wahana Inti and Jaya Swarasa.
Diversification Opportunities for Wahana Inti and Jaya Swarasa
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wahana and Jaya is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Wahana Inti MakmurTbk and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung and Wahana Inti 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 Wahana Inti MakmurTbk are associated (or correlated) with Jaya Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of Wahana Inti i.e., Wahana Inti and Jaya Swarasa go up and down completely randomly.
Pair Corralation between Wahana Inti and Jaya Swarasa
Assuming the 90 days trading horizon Wahana Inti MakmurTbk is expected to generate 1.12 times more return on investment than Jaya Swarasa. However, Wahana Inti is 1.12 times more volatile than Jaya Swarasa Agung. It trades about 0.02 of its potential returns per unit of risk. Jaya Swarasa Agung is currently generating about -0.08 per unit of risk. If you would invest 9,500 in Wahana Inti MakmurTbk on September 3, 2024 and sell it today you would lose (900.00) from holding Wahana Inti MakmurTbk or give up 9.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wahana Inti MakmurTbk vs. Jaya Swarasa Agung
Performance |
| Timeline |
| Wahana Inti MakmurTbk |
| Jaya Swarasa Agung |
Wahana Inti and Jaya Swarasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wahana Inti and Jaya Swarasa
The main advantage of trading using opposite Wahana Inti and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wahana Inti position performs unexpectedly, Jaya Swarasa 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 Swarasa will offset losses from the drop in Jaya Swarasa's long position.| Wahana Inti vs. Dharma Satya Nusantara | Wahana Inti vs. Saratoga Investama Sedaya | Wahana Inti vs. Surya Esa Perkasa | Wahana Inti vs. Elang Mahkota Teknologi |
| Jaya Swarasa vs. Wahana Inti MakmurTbk | Jaya Swarasa vs. Formosa Ingredient Factory | Jaya Swarasa vs. Triputra Agro Persada | Jaya Swarasa vs. Cisarua Mountain Dairy |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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