Correlation Between Jaya Sukses and Putra Mandiri
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Putra Mandiri 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 Putra Mandiri 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 Putra Mandiri Jembar, you can compare the effects of market volatilities on Jaya Sukses and Putra Mandiri 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 Putra Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Putra Mandiri.
Diversification Opportunities for Jaya Sukses and Putra Mandiri
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jaya and Putra is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Putra Mandiri Jembar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Mandiri Jembar 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 Putra Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Mandiri Jembar has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Putra Mandiri go up and down completely randomly.
Pair Corralation between Jaya Sukses and Putra Mandiri
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to generate 0.14 times more return on investment than Putra Mandiri. However, Jaya Sukses Makmur is 6.92 times less risky than Putra Mandiri. It trades about 0.12 of its potential returns per unit of risk. Putra Mandiri Jembar is currently generating about 0.0 per unit of risk. If you would invest 98,500 in Jaya Sukses Makmur on September 19, 2024 and sell it today you would earn a total of 7,000 from holding Jaya Sukses Makmur or generate 7.11% 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. Putra Mandiri Jembar
Performance |
| Timeline |
| Jaya Sukses Makmur |
| Putra Mandiri Jembar |
Jaya Sukses and Putra Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Sukses and Putra Mandiri
The main advantage of trading using opposite Jaya Sukses and Putra Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Putra Mandiri 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 Putra Mandiri will offset losses from the drop in Putra Mandiri's long position.| Jaya Sukses vs. PT Indonesia Kendaraan | Jaya Sukses vs. Surya Toto Indonesia | Jaya Sukses vs. Mitra Pinasthika Mustika | Jaya Sukses vs. Integra Indocabinet Tbk |
| Putra Mandiri vs. MNC Studios International | Putra Mandiri vs. Jaya Sukses Makmur | Putra Mandiri vs. Mitrabara Adiperdana PT | Putra Mandiri vs. PT Multi Garam |
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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