Correlation Between Destinasi Tirta and J Resources
Can any of the company-specific risk be diversified away by investing in both Destinasi Tirta and J Resources 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 Destinasi Tirta and J Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Destinasi Tirta Nusantara and J Resources Asia, you can compare the effects of market volatilities on Destinasi Tirta and J Resources 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 Destinasi Tirta with a short position of J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Destinasi Tirta and J Resources.
Diversification Opportunities for Destinasi Tirta and J Resources
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Destinasi and PSAB is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Destinasi Tirta Nusantara and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia and Destinasi Tirta 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 Destinasi Tirta Nusantara are associated (or correlated) with J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Destinasi Tirta i.e., Destinasi Tirta and J Resources go up and down completely randomly.
Pair Corralation between Destinasi Tirta and J Resources
Assuming the 90 days trading horizon Destinasi Tirta Nusantara is expected to generate 0.17 times more return on investment than J Resources. However, Destinasi Tirta Nusantara is 5.97 times less risky than J Resources. It trades about 0.06 of its potential returns per unit of risk. J Resources Asia is currently generating about -0.1 per unit of risk. If you would invest 26,800 in Destinasi Tirta Nusantara on August 29, 2024 and sell it today you would earn a total of 200.00 from holding Destinasi Tirta Nusantara or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Destinasi Tirta Nusantara vs. J Resources Asia
Performance |
| Timeline |
| Destinasi Tirta Nusantara |
| J Resources Asia |
Destinasi Tirta and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Destinasi Tirta and J Resources
The main advantage of trading using opposite Destinasi Tirta and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Destinasi Tirta position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' long position.| Destinasi Tirta vs. Panorama Sentrawisata Tbk | Destinasi Tirta vs. Pembangunan Graha Lestari | Destinasi Tirta vs. Hotel Sahid Jaya | Destinasi Tirta vs. Pembangunan Jaya Ancol |
| J Resources vs. Kedaung Indah Can | J Resources vs. Langgeng Makmur Industri | J Resources vs. Kabelindo Murni Tbk | J Resources vs. Mustika Ratu 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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