Correlation Between Pembangunan Jaya and Trisula Textile
Can any of the company-specific risk be diversified away by investing in both Pembangunan Jaya and Trisula Textile 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 Pembangunan Jaya and Trisula Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pembangunan Jaya Ancol and Trisula Textile Industries, you can compare the effects of market volatilities on Pembangunan Jaya and Trisula Textile 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 Pembangunan Jaya with a short position of Trisula Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Jaya and Trisula Textile.
Diversification Opportunities for Pembangunan Jaya and Trisula Textile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pembangunan and Trisula is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Jaya Ancol and Trisula Textile Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisula Textile Indu and Pembangunan Jaya 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 Pembangunan Jaya Ancol are associated (or correlated) with Trisula Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisula Textile Indu has no effect on the direction of Pembangunan Jaya i.e., Pembangunan Jaya and Trisula Textile go up and down completely randomly.
Pair Corralation between Pembangunan Jaya and Trisula Textile
Assuming the 90 days trading horizon Pembangunan Jaya Ancol is expected to generate 0.31 times more return on investment than Trisula Textile. However, Pembangunan Jaya Ancol is 3.23 times less risky than Trisula Textile. It trades about -0.23 of its potential returns per unit of risk. Trisula Textile Industries is currently generating about -0.08 per unit of risk. If you would invest 62,000 in Pembangunan Jaya Ancol on September 12, 2024 and sell it today you would lose (3,000) from holding Pembangunan Jaya Ancol or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pembangunan Jaya Ancol vs. Trisula Textile Industries
Performance |
| Timeline |
| Pembangunan Jaya Ancol |
| Trisula Textile Indu |
Pembangunan Jaya and Trisula Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Jaya and Trisula Textile
The main advantage of trading using opposite Pembangunan Jaya and Trisula Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Jaya position performs unexpectedly, Trisula Textile 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 Trisula Textile will offset losses from the drop in Trisula Textile's long position.| Pembangunan Jaya vs. Pembangunan Graha Lestari | Pembangunan Jaya vs. Hotel Sahid Jaya | Pembangunan Jaya vs. Mitrabara Adiperdana PT | Pembangunan Jaya vs. PT Multi Garam |
| Trisula Textile vs. Pembangunan Graha Lestari | Trisula Textile vs. Pembangunan Jaya Ancol | Trisula Textile vs. Hotel Sahid Jaya | Trisula Textile vs. Mitrabara Adiperdana PT |
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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