Correlation Between Hotel Sahid and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Hotel Sahid and Japfa Comfeed 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 Hotel Sahid and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Sahid Jaya and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Hotel Sahid and Japfa Comfeed 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 Hotel Sahid with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sahid and Japfa Comfeed.
Diversification Opportunities for Hotel Sahid and Japfa Comfeed
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Japfa is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sahid Jaya and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and Hotel Sahid 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 Hotel Sahid Jaya are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Hotel Sahid i.e., Hotel Sahid and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Hotel Sahid and Japfa Comfeed
Assuming the 90 days trading horizon Hotel Sahid Jaya is expected to under-perform the Japfa Comfeed. In addition to that, Hotel Sahid is 1.07 times more volatile than Japfa Comfeed Indonesia. It trades about 0.0 of its total potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about 0.09 per unit of volatility. If you would invest 133,416 in Japfa Comfeed Indonesia on September 2, 2024 and sell it today you would earn a total of 38,084 from holding Japfa Comfeed Indonesia or generate 28.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Sahid Jaya vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Hotel Sahid Jaya |
| Japfa Comfeed Indonesia |
Hotel Sahid and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sahid and Japfa Comfeed
The main advantage of trading using opposite Hotel Sahid and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sahid position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Hotel Sahid vs. Pembangunan Jaya Ancol | Hotel Sahid vs. Panorama Sentrawisata Tbk | Hotel Sahid vs. Sona Topas Tourism | Hotel Sahid vs. Millennium Pharmacon International |
| Japfa Comfeed vs. Bank BRISyariah Tbk | Japfa Comfeed vs. Mitra Pinasthika Mustika | Japfa Comfeed vs. Jakarta Int Hotels | Japfa Comfeed vs. Indosterling Technomedia 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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