Correlation Between Jaya Sukses and Pollux Investasi
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Pollux Investasi 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 Pollux Investasi 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 Pollux Investasi Internasional, you can compare the effects of market volatilities on Jaya Sukses and Pollux Investasi 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 Pollux Investasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Pollux Investasi.
Diversification Opportunities for Jaya Sukses and Pollux Investasi
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jaya and Pollux is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Pollux Investasi Internasional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pollux Investasi Int 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 Pollux Investasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pollux Investasi Int has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Pollux Investasi go up and down completely randomly.
Pair Corralation between Jaya Sukses and Pollux Investasi
Assuming the 90 days trading horizon Jaya Sukses is expected to generate 3.13 times less return on investment than Pollux Investasi. But when comparing it to its historical volatility, Jaya Sukses Makmur is 10.72 times less risky than Pollux Investasi. It trades about 0.19 of its potential returns per unit of risk. Pollux Investasi Internasional is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 68,500 in Pollux Investasi Internasional on August 30, 2024 and sell it today you would earn a total of 10,000 from holding Pollux Investasi Internasional or generate 14.6% 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. Pollux Investasi Internasional
Performance |
| Timeline |
| Jaya Sukses Makmur |
| Pollux Investasi Int |
Jaya Sukses and Pollux Investasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Sukses and Pollux Investasi
The main advantage of trading using opposite Jaya Sukses and Pollux Investasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Pollux Investasi 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 Pollux Investasi will offset losses from the drop in Pollux Investasi's long position.| Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo Tbk |
| Pollux Investasi vs. Pollux Properti Indonesia | Pollux Investasi vs. Maha Properti Indonesia | Pollux Investasi vs. Mega Manunggal Property | Pollux Investasi vs. Urban Jakarta Propertindo |
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 Positions Ratings module to 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.
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