Correlation Between J Resources and Wahana Inti
Can any of the company-specific risk be diversified away by investing in both J Resources and Wahana Inti 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 J Resources and Wahana Inti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Resources Asia and Wahana Inti MakmurTbk, you can compare the effects of market volatilities on J Resources and Wahana Inti 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 J Resources with a short position of Wahana Inti. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Resources and Wahana Inti.
Diversification Opportunities for J Resources and Wahana Inti
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PSAB and Wahana is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding J Resources Asia and Wahana Inti MakmurTbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Inti MakmurTbk and J Resources 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 J Resources Asia are associated (or correlated) with Wahana Inti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Inti MakmurTbk has no effect on the direction of J Resources i.e., J Resources and Wahana Inti go up and down completely randomly.
Pair Corralation between J Resources and Wahana Inti
Assuming the 90 days trading horizon J Resources Asia is expected to generate 0.69 times more return on investment than Wahana Inti. However, J Resources Asia is 1.44 times less risky than Wahana Inti. It trades about 0.11 of its potential returns per unit of risk. Wahana Inti MakmurTbk is currently generating about 0.04 per unit of risk. If you would invest 8,500 in J Resources Asia on September 12, 2024 and sell it today you would earn a total of 23,100 from holding J Resources Asia or generate 271.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
J Resources Asia vs. Wahana Inti MakmurTbk
Performance |
| Timeline |
| J Resources Asia |
| Wahana Inti MakmurTbk |
J Resources and Wahana Inti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Resources and Wahana Inti
The main advantage of trading using opposite J Resources and Wahana Inti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Resources position performs unexpectedly, Wahana Inti 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 Wahana Inti will offset losses from the drop in Wahana Inti's long position.| J Resources vs. Merdeka Copper Gold | J Resources vs. Golden Eagle Energy | J Resources vs. Rukun Raharja Tbk | J Resources vs. Wilton Makmur Indonesia |
| Wahana Inti vs. Mahkota Group Tbk | Wahana Inti vs. Palma Serasih PT | Wahana Inti vs. Cisadane Sawit Raya | Wahana Inti vs. Diamond Food Indonesia |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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