Correlation Between Indo Acidatama and PT Janu
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and PT Janu 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 Indo Acidatama and PT Janu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Acidatama Tbk and PT Janu Putra, you can compare the effects of market volatilities on Indo Acidatama and PT Janu 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 Indo Acidatama with a short position of PT Janu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and PT Janu.
Diversification Opportunities for Indo Acidatama and PT Janu
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and AYAM is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and PT Janu Putra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Janu Putra and Indo Acidatama 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 Indo Acidatama Tbk are associated (or correlated) with PT Janu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Janu Putra has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and PT Janu go up and down completely randomly.
Pair Corralation between Indo Acidatama and PT Janu
Assuming the 90 days trading horizon Indo Acidatama is expected to generate 2.9 times less return on investment than PT Janu. But when comparing it to its historical volatility, Indo Acidatama Tbk is 1.6 times less risky than PT Janu. It trades about 0.02 of its potential returns per unit of risk. PT Janu Putra is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13,500 in PT Janu Putra on September 2, 2024 and sell it today you would earn a total of 1,300 from holding PT Janu Putra or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.76% |
| Values | Daily Returns |
Indo Acidatama Tbk vs. PT Janu Putra
Performance |
| Timeline |
| Indo Acidatama Tbk |
| PT Janu Putra |
Indo Acidatama and PT Janu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Acidatama and PT Janu
The main advantage of trading using opposite Indo Acidatama and PT Janu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, PT Janu 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 PT Janu will offset losses from the drop in PT Janu's long position.| Indo Acidatama vs. Perusahaan Gas Negara | Indo Acidatama vs. Telkom Indonesia Tbk | Indo Acidatama vs. Mitra Pinasthika Mustika | Indo Acidatama vs. Jakarta Int Hotels |
| PT Janu vs. Lion Metal Works | PT Janu vs. Indo Acidatama Tbk | PT Janu vs. Fast Food Indonesia | PT Janu vs. Chandra Asri Petrochemical |
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.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |