Correlation Between J Resources and Timah Persero
Can any of the company-specific risk be diversified away by investing in both J Resources and Timah Persero 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 Timah Persero 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 Timah Persero Tbk, you can compare the effects of market volatilities on J Resources and Timah Persero 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 Timah Persero. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Resources and Timah Persero.
Diversification Opportunities for J Resources and Timah Persero
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PSAB and Timah is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding J Resources Asia and Timah Persero Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timah Persero Tbk 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 Timah Persero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timah Persero Tbk has no effect on the direction of J Resources i.e., J Resources and Timah Persero go up and down completely randomly.
Pair Corralation between J Resources and Timah Persero
Assuming the 90 days trading horizon J Resources Asia is expected to generate 0.69 times more return on investment than Timah Persero. However, J Resources Asia is 1.45 times less risky than Timah Persero. It trades about -0.03 of its potential returns per unit of risk. Timah Persero Tbk is currently generating about -0.16 per unit of risk. If you would invest 32,200 in J Resources Asia on September 12, 2024 and sell it today you would lose (800.00) from holding J Resources Asia or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Resources Asia vs. Timah Persero Tbk
Performance |
| Timeline |
| J Resources Asia |
| Timah Persero Tbk |
J Resources and Timah Persero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Resources and Timah Persero
The main advantage of trading using opposite J Resources and Timah Persero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Resources position performs unexpectedly, Timah Persero 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 Timah Persero will offset losses from the drop in Timah Persero'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 |
| Timah Persero vs. Vale Indonesia Tbk | Timah Persero vs. Aneka Tambang Persero | Timah Persero vs. Bukit Asam Tbk | Timah Persero vs. Perusahaan Gas Negara |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |