Correlation Between Jaya Sukses and Diamond Citra
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Diamond Citra 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 Diamond Citra 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 Diamond Citra Propertindo, you can compare the effects of market volatilities on Jaya Sukses and Diamond Citra 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 Diamond Citra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Diamond Citra.
Diversification Opportunities for Jaya Sukses and Diamond Citra
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Diamond is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Diamond Citra Propertindo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diamond Citra Propertindo 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 Diamond Citra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diamond Citra Propertindo has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Diamond Citra go up and down completely randomly.
Pair Corralation between Jaya Sukses and Diamond Citra
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to generate 0.02 times more return on investment than Diamond Citra. However, Jaya Sukses Makmur is 58.97 times less risky than Diamond Citra. It trades about 0.32 of its potential returns per unit of risk. Diamond Citra Propertindo is currently generating about -0.03 per unit of risk. If you would invest 99,000 in Jaya Sukses Makmur on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Jaya Sukses Makmur or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Sukses Makmur vs. Diamond Citra Propertindo
Performance |
| Timeline |
| Jaya Sukses Makmur |
| Diamond Citra Propertindo |
Jaya Sukses and Diamond Citra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Sukses and Diamond Citra
The main advantage of trading using opposite Jaya Sukses and Diamond Citra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Diamond Citra 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 Diamond Citra will offset losses from the drop in Diamond Citra'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 |
| Diamond Citra vs. Perintis Triniti Properti | Diamond Citra vs. Satria Mega Kencana | Diamond Citra vs. Sunindo Adipersada Tbk | Diamond Citra vs. Jaya Sukses Makmur |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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