Correlation Between Prima Globalindo and Jasa Armada
Can any of the company-specific risk be diversified away by investing in both Prima Globalindo and Jasa Armada 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 Prima Globalindo and Jasa Armada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prima Globalindo Logistik and Jasa Armada Indonesia, you can compare the effects of market volatilities on Prima Globalindo and Jasa Armada 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 Prima Globalindo with a short position of Jasa Armada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prima Globalindo and Jasa Armada.
Diversification Opportunities for Prima Globalindo and Jasa Armada
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Prima and Jasa is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Prima Globalindo Logistik and Jasa Armada Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Armada Indonesia and Prima Globalindo 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 Prima Globalindo Logistik are associated (or correlated) with Jasa Armada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Armada Indonesia has no effect on the direction of Prima Globalindo i.e., Prima Globalindo and Jasa Armada go up and down completely randomly.
Pair Corralation between Prima Globalindo and Jasa Armada
Assuming the 90 days trading horizon Prima Globalindo Logistik is expected to under-perform the Jasa Armada. In addition to that, Prima Globalindo is 2.85 times more volatile than Jasa Armada Indonesia. It trades about -0.12 of its total potential returns per unit of risk. Jasa Armada Indonesia is currently generating about -0.07 per unit of volatility. If you would invest 27,200 in Jasa Armada Indonesia on September 4, 2024 and sell it today you would lose (200.00) from holding Jasa Armada Indonesia or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Prima Globalindo Logistik vs. Jasa Armada Indonesia
Performance |
| Timeline |
| Prima Globalindo Logistik |
| Jasa Armada Indonesia |
Prima Globalindo and Jasa Armada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prima Globalindo and Jasa Armada
The main advantage of trading using opposite Prima Globalindo and Jasa Armada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prima Globalindo position performs unexpectedly, Jasa Armada 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 Armada will offset losses from the drop in Jasa Armada's long position.| Prima Globalindo vs. Jasa Armada Indonesia | Prima Globalindo vs. Cikarang Listrindo Tbk | Prima Globalindo vs. Mitra Pinasthika Mustika | Prima Globalindo vs. Wijaya Karya Bangunan |
| Jasa Armada vs. Intanwijaya Internasional Tbk | Jasa Armada vs. Champion Pacific Indonesia | Jasa Armada vs. Mitra Pinasthika Mustika | Jasa Armada vs. Jakarta Int Hotels |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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