Correlation Between Pembangunan Jaya and Pt Pakuan
Can any of the company-specific risk be diversified away by investing in both Pembangunan Jaya and Pt Pakuan 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 Pt Pakuan 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 Pt Pakuan Tbk, you can compare the effects of market volatilities on Pembangunan Jaya and Pt Pakuan 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 Pt Pakuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembangunan Jaya and Pt Pakuan.
Diversification Opportunities for Pembangunan Jaya and Pt Pakuan
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pembangunan and UANG is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pembangunan Jaya Ancol and Pt Pakuan Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pt Pakuan Tbk 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 Pt Pakuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pt Pakuan Tbk has no effect on the direction of Pembangunan Jaya i.e., Pembangunan Jaya and Pt Pakuan go up and down completely randomly.
Pair Corralation between Pembangunan Jaya and Pt Pakuan
Assuming the 90 days trading horizon Pembangunan Jaya Ancol is expected to under-perform the Pt Pakuan. But the stock apears to be less risky and, when comparing its historical volatility, Pembangunan Jaya Ancol is 2.69 times less risky than Pt Pakuan. The stock trades about -0.34 of its potential returns per unit of risk. The Pt Pakuan Tbk is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 47,600 in Pt Pakuan Tbk on December 6, 2024 and sell it today you would lose (5,600) from holding Pt Pakuan Tbk or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pembangunan Jaya Ancol vs. Pt Pakuan Tbk
Performance |
| Timeline |
| Pembangunan Jaya Ancol |
| Pt Pakuan Tbk |
Pembangunan Jaya and Pt Pakuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pembangunan Jaya and Pt Pakuan
The main advantage of trading using opposite Pembangunan Jaya and Pt Pakuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembangunan Jaya position performs unexpectedly, Pt Pakuan 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 Pt Pakuan will offset losses from the drop in Pt Pakuan's long position.| Pembangunan Jaya vs. Lautan Luas Tbk | Pembangunan Jaya vs. Panorama Sentrawisata Tbk | Pembangunan Jaya vs. Multi Indocitra Tbk | Pembangunan Jaya vs. Hotel Sahid Jaya |
| Pt Pakuan vs. Perintis Triniti Properti | Pt Pakuan vs. Satria Mega Kencana | Pt Pakuan vs. Sunindo Adipersada Tbk | Pt Pakuan vs. Jaya Sukses Makmur |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |