Correlation Between Pelayaran Nelly and Jembo Cable
Can any of the company-specific risk be diversified away by investing in both Pelayaran Nelly and Jembo Cable 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 Pelayaran Nelly and Jembo Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pelayaran Nelly Dwi and Jembo Cable, you can compare the effects of market volatilities on Pelayaran Nelly and Jembo Cable 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 Pelayaran Nelly with a short position of Jembo Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pelayaran Nelly and Jembo Cable.
Diversification Opportunities for Pelayaran Nelly and Jembo Cable
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pelayaran and Jembo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pelayaran Nelly Dwi and Jembo Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jembo Cable and Pelayaran Nelly 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 Pelayaran Nelly Dwi are associated (or correlated) with Jembo Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jembo Cable has no effect on the direction of Pelayaran Nelly i.e., Pelayaran Nelly and Jembo Cable go up and down completely randomly.
Pair Corralation between Pelayaran Nelly and Jembo Cable
Assuming the 90 days trading horizon Pelayaran Nelly Dwi is expected to under-perform the Jembo Cable. But the stock apears to be less risky and, when comparing its historical volatility, Pelayaran Nelly Dwi is 1.68 times less risky than Jembo Cable. The stock trades about -0.17 of its potential returns per unit of risk. The Jembo Cable is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 62,000 in Jembo Cable on September 1, 2024 and sell it today you would lose (500.00) from holding Jembo Cable or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pelayaran Nelly Dwi vs. Jembo Cable
Performance |
| Timeline |
| Pelayaran Nelly Dwi |
| Jembo Cable |
Pelayaran Nelly and Jembo Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pelayaran Nelly and Jembo Cable
The main advantage of trading using opposite Pelayaran Nelly and Jembo Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pelayaran Nelly position performs unexpectedly, Jembo Cable 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 Jembo Cable will offset losses from the drop in Jembo Cable's long position.| Pelayaran Nelly vs. Trans Power Marine | Pelayaran Nelly vs. Pelita Samudera Shipping | Pelayaran Nelly vs. Samudera Indonesia Tbk | Pelayaran Nelly vs. Mitrabahtera Segara Sejati |
| Jembo Cable vs. Matahari Department Store | Jembo Cable vs. Multi Medika Internasional | Jembo Cable vs. Visi Media Asia | Jembo Cable 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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