Correlation Between Global Sukses and Jaya Swarasa
Can any of the company-specific risk be diversified away by investing in both Global Sukses and Jaya Swarasa 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 Global Sukses and Jaya Swarasa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Sukses Solusi and Jaya Swarasa Agung, you can compare the effects of market volatilities on Global Sukses and Jaya Swarasa 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 Global Sukses with a short position of Jaya Swarasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Sukses and Jaya Swarasa.
Diversification Opportunities for Global Sukses and Jaya Swarasa
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Jaya is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Global Sukses Solusi and Jaya Swarasa Agung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Swarasa Agung and Global 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 Global Sukses Solusi are associated (or correlated) with Jaya Swarasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Swarasa Agung has no effect on the direction of Global Sukses i.e., Global Sukses and Jaya Swarasa go up and down completely randomly.
Pair Corralation between Global Sukses and Jaya Swarasa
Assuming the 90 days trading horizon Global Sukses Solusi is expected to generate 2.31 times more return on investment than Jaya Swarasa. However, Global Sukses is 2.31 times more volatile than Jaya Swarasa Agung. It trades about -0.05 of its potential returns per unit of risk. Jaya Swarasa Agung is currently generating about -0.41 per unit of risk. If you would invest 7,800 in Global Sukses Solusi on September 1, 2024 and sell it today you would lose (400.00) from holding Global Sukses Solusi or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global Sukses Solusi vs. Jaya Swarasa Agung
Performance |
| Timeline |
| Global Sukses Solusi |
| Jaya Swarasa Agung |
Global Sukses and Jaya Swarasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Sukses and Jaya Swarasa
The main advantage of trading using opposite Global Sukses and Jaya Swarasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Sukses position performs unexpectedly, Jaya Swarasa 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 Jaya Swarasa will offset losses from the drop in Jaya Swarasa's long position.| Global Sukses vs. Trimegah Karya Pratama | Global Sukses vs. Surya Biru Murni | Global Sukses vs. Indo Oil Perkasa | Global Sukses vs. Wira Global Solusi |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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