Correlation Between Jaya Sukses and Rukun Raharja
Can any of the company-specific risk be diversified away by investing in both Jaya Sukses and Rukun Raharja 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 Rukun Raharja 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 Rukun Raharja Tbk, you can compare the effects of market volatilities on Jaya Sukses and Rukun Raharja 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 Rukun Raharja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Sukses and Rukun Raharja.
Diversification Opportunities for Jaya Sukses and Rukun Raharja
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jaya and Rukun is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Sukses Makmur and Rukun Raharja Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rukun Raharja Tbk 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 Rukun Raharja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rukun Raharja Tbk has no effect on the direction of Jaya Sukses i.e., Jaya Sukses and Rukun Raharja go up and down completely randomly.
Pair Corralation between Jaya Sukses and Rukun Raharja
Assuming the 90 days trading horizon Jaya Sukses Makmur is expected to under-perform the Rukun Raharja. But the stock apears to be less risky and, when comparing its historical volatility, Jaya Sukses Makmur is 4.71 times less risky than Rukun Raharja. The stock trades about -0.02 of its potential returns per unit of risk. The Rukun Raharja Tbk is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 90,183 in Rukun Raharja Tbk on August 30, 2024 and sell it today you would earn a total of 142,817 from holding Rukun Raharja Tbk or generate 158.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jaya Sukses Makmur vs. Rukun Raharja Tbk
Performance |
| Timeline |
| Jaya Sukses Makmur |
| Rukun Raharja Tbk |
Jaya Sukses and Rukun Raharja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Sukses and Rukun Raharja
The main advantage of trading using opposite Jaya Sukses and Rukun Raharja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Sukses position performs unexpectedly, Rukun Raharja 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 Rukun Raharja will offset losses from the drop in Rukun Raharja'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 |
| Rukun Raharja vs. Petrosea Tbk | Rukun Raharja vs. Harum Energy Tbk | Rukun Raharja vs. Perdana Karya Perkasa | Rukun Raharja vs. Bayan Resources 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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