Correlation Between J Resources and Trimegah Securities
Can any of the company-specific risk be diversified away by investing in both J Resources and Trimegah Securities 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 Trimegah Securities 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 Trimegah Securities Tbk, you can compare the effects of market volatilities on J Resources and Trimegah Securities 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 Trimegah Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Resources and Trimegah Securities.
Diversification Opportunities for J Resources and Trimegah Securities
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PSAB and Trimegah is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding J Resources Asia and Trimegah Securities Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimegah Securities 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 Trimegah Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimegah Securities Tbk has no effect on the direction of J Resources i.e., J Resources and Trimegah Securities go up and down completely randomly.
Pair Corralation between J Resources and Trimegah Securities
Assuming the 90 days trading horizon J Resources Asia is expected to under-perform the Trimegah Securities. But the stock apears to be less risky and, when comparing its historical volatility, J Resources Asia is 1.22 times less risky than Trimegah Securities. The stock trades about -0.01 of its potential returns per unit of risk. The Trimegah Securities Tbk is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 30,000 in Trimegah Securities Tbk on September 4, 2024 and sell it today you would earn a total of 5,800 from holding Trimegah Securities Tbk or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
J Resources Asia vs. Trimegah Securities Tbk
Performance |
| Timeline |
| J Resources Asia |
| Trimegah Securities Tbk |
J Resources and Trimegah Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Resources and Trimegah Securities
The main advantage of trading using opposite J Resources and Trimegah Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Resources position performs unexpectedly, Trimegah Securities 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 Trimegah Securities will offset losses from the drop in Trimegah Securities' long position.| J Resources vs. Timah Persero Tbk | J Resources vs. Semen Indonesia Persero | J Resources vs. Mitra Pinasthika Mustika | J Resources vs. Jakarta Int Hotels |
| Trimegah Securities vs. Wahana Ottomitra Multiartha | Trimegah Securities vs. Paninvest Tbk | Trimegah Securities vs. Sinar Mas Multiartha | Trimegah Securities vs. Trias Sentosa Tbk |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |