Correlation Between Perusahaan Gas and Jasa Marga
Can any of the company-specific risk be diversified away by investing in both Perusahaan Gas and Jasa Marga 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 Perusahaan Gas and Jasa Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perusahaan Gas Negara and Jasa Marga Tbk, you can compare the effects of market volatilities on Perusahaan Gas and Jasa Marga 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 Perusahaan Gas with a short position of Jasa Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perusahaan Gas and Jasa Marga.
Diversification Opportunities for Perusahaan Gas and Jasa Marga
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Perusahaan and Jasa is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Gas Negara and Jasa Marga Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Marga Tbk and Perusahaan Gas 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 Perusahaan Gas Negara are associated (or correlated) with Jasa Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Marga Tbk has no effect on the direction of Perusahaan Gas i.e., Perusahaan Gas and Jasa Marga go up and down completely randomly.
Pair Corralation between Perusahaan Gas and Jasa Marga
Assuming the 90 days trading horizon Perusahaan Gas is expected to generate 1.08 times less return on investment than Jasa Marga. But when comparing it to its historical volatility, Perusahaan Gas Negara is 1.09 times less risky than Jasa Marga. It trades about 0.04 of its potential returns per unit of risk. Jasa Marga Tbk is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 315,563 in Jasa Marga Tbk on November 19, 2024 and sell it today you would earn a total of 94,437 from holding Jasa Marga Tbk or generate 29.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Perusahaan Gas Negara vs. Jasa Marga Tbk
Performance |
| Timeline |
| Perusahaan Gas Negara |
| Jasa Marga Tbk |
Perusahaan Gas and Jasa Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perusahaan Gas and Jasa Marga
The main advantage of trading using opposite Perusahaan Gas and Jasa Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Gas position performs unexpectedly, Jasa Marga 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 Jasa Marga will offset losses from the drop in Jasa Marga's long position.| Perusahaan Gas vs. Aneka Tambang Persero | Perusahaan Gas vs. Bukit Asam Tbk | Perusahaan Gas vs. Telkom Indonesia Tbk | Perusahaan Gas vs. Astra International Tbk |
| Jasa Marga vs. Semen Indonesia Persero | Jasa Marga vs. Wijaya Karya Beton | Jasa Marga vs. Perusahaan Gas Negara | Jasa Marga vs. PT Indofood Sukses |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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