Correlation Between PT Bumi and J JILL
Can any of the company-specific risk be diversified away by investing in both PT Bumi and J JILL 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 PT Bumi and J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bumi Resources and J JILL INC, you can compare the effects of market volatilities on PT Bumi and J JILL 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 PT Bumi with a short position of J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bumi and J JILL.
Diversification Opportunities for PT Bumi and J JILL
Very good diversification
The 3 months correlation between PJM and 1MJ1 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PT Bumi Resources and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC and PT Bumi 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 PT Bumi Resources are associated (or correlated) with J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of PT Bumi i.e., PT Bumi and J JILL go up and down completely randomly.
Pair Corralation between PT Bumi and J JILL
Assuming the 90 days horizon PT Bumi is expected to generate 2.62 times less return on investment than J JILL. In addition to that, PT Bumi is 2.7 times more volatile than J JILL INC. It trades about 0.03 of its total potential returns per unit of risk. J JILL INC is currently generating about 0.23 per unit of volatility. If you would invest 2,280 in J JILL INC on August 28, 2024 and sell it today you would earn a total of 300.00 from holding J JILL INC or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bumi Resources vs. J JILL INC
Performance |
| Timeline |
| PT Bumi Resources |
| J JILL INC |
PT Bumi and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bumi and J JILL
The main advantage of trading using opposite PT Bumi and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bumi position performs unexpectedly, J JILL 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 JILL will offset losses from the drop in J JILL's long position.| PT Bumi vs. RYU Apparel | PT Bumi vs. Constellation Software | PT Bumi vs. Unity Software | PT Bumi vs. CARSALESCOM |
| J JILL vs. RETAIL FOOD GROUP | J JILL vs. Auto Trader Group | J JILL vs. AUTO TRADER ADR | J JILL vs. Canadian Utilities Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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