Correlation Between Indo Acidatama and PT Jobubu
Can any of the company-specific risk be diversified away by investing in both Indo Acidatama and PT Jobubu 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 Jobubu 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 Jobubu Jarum, you can compare the effects of market volatilities on Indo Acidatama and PT Jobubu 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 Jobubu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Acidatama and PT Jobubu.
Diversification Opportunities for Indo Acidatama and PT Jobubu
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Indo and BEER is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Indo Acidatama Tbk and PT Jobubu Jarum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jobubu Jarum 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 Jobubu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jobubu Jarum has no effect on the direction of Indo Acidatama i.e., Indo Acidatama and PT Jobubu go up and down completely randomly.
Pair Corralation between Indo Acidatama and PT Jobubu
Assuming the 90 days trading horizon Indo Acidatama Tbk is expected to generate 0.71 times more return on investment than PT Jobubu. However, Indo Acidatama Tbk is 1.4 times less risky than PT Jobubu. It trades about -0.17 of its potential returns per unit of risk. PT Jobubu Jarum is currently generating about -0.22 per unit of risk. If you would invest 5,200 in Indo Acidatama Tbk on August 24, 2024 and sell it today you would lose (200.00) from holding Indo Acidatama Tbk or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Acidatama Tbk vs. PT Jobubu Jarum
Performance |
| Timeline |
| Indo Acidatama Tbk |
| PT Jobubu Jarum |
Indo Acidatama and PT Jobubu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Acidatama and PT Jobubu
The main advantage of trading using opposite Indo Acidatama and PT Jobubu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Acidatama position performs unexpectedly, PT Jobubu 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 Jobubu will offset losses from the drop in PT Jobubu's long position.| Indo Acidatama vs. Kedaung Indah Can | Indo Acidatama vs. Langgeng Makmur Industri | Indo Acidatama vs. Kabelindo Murni Tbk | Indo Acidatama vs. Champion Pacific Indonesia |
| PT Jobubu vs. Bank Central Asia | PT Jobubu vs. Bank Rakyat Indonesia | PT Jobubu vs. Bayan Resources Tbk | PT Jobubu vs. Bank Mandiri Persero |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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