Correlation Between Jaya Sukses and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Bintang Oto 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 Jaya Sukses and Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Sukses Makmur and Bintang Oto Global, you can compare the effects of market volatilities on Jaya Sukses and Bintang Oto 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 Jaya Sukses with a short position of Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Bintang Oto.
Diversification Opportunities for Jaya Sukses and Bintang Oto
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Bintang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global and Jaya Sukses 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 Jaya Sukses Makmur are associated (or correlated) with Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Bintang Oto go up and down completely randomly.
Pair Corralation between Jaya Sukses and Bintang Oto
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to generate 0.19 times more return on investment than Bintang Oto. However, Jaya Sukses Makmur is 5.39 times less risky than Bintang Oto. It trades about 0.05 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.09 per unit of risk. If you would invest 93,000 in Jaya Sukses Makmur on September 1, 2024 and sell it today you would earn a total of 7,000 from holding Jaya Sukses Makmur or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Sukses Makmur vs. Bintang Oto Global
Performance |
| Timeline |
| Jaya Sukses Makmur |
| Bintang Oto Global |
Jaya Sukses and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Sukses and Bintang Oto
The main advantage of trading using opposite Jaya Sukses and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.| Jaya Sukses vs. Matahari Department Store | Jaya Sukses vs. Multi Medika Internasional | Jaya Sukses vs. Visi Media Asia | Jaya Sukses vs. Bayan Resources Tbk |
| Bintang Oto vs. Japfa Comfeed Indonesia | Bintang Oto vs. Charoen Pokphand Indonesia | Bintang Oto vs. Erajaya Swasembada Tbk | Bintang Oto vs. Indofood Cbp Sukses |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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