Correlation Between Slj Global and J Resources
Can any of the company-specific risk be diversified away by investing in both Slj Global and J Resources 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 Slj Global and J Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slj Global Tbk and J Resources Asia, you can compare the effects of market volatilities on Slj Global and J Resources 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 Slj Global with a short position of J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slj Global and J Resources.
Diversification Opportunities for Slj Global and J Resources
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slj and PSAB is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Slj Global Tbk and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia and Slj Global 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 Slj Global Tbk are associated (or correlated) with J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Slj Global i.e., Slj Global and J Resources go up and down completely randomly.
Pair Corralation between Slj Global and J Resources
Assuming the 90 days trading horizon Slj Global Tbk is expected to under-perform the J Resources. But the stock apears to be less risky and, when comparing its historical volatility, Slj Global Tbk is 1.43 times less risky than J Resources. The stock trades about -0.32 of its potential returns per unit of risk. The J Resources Asia is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 33,600 in J Resources Asia on August 31, 2024 and sell it today you would lose (3,400) from holding J Resources Asia or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slj Global Tbk vs. J Resources Asia
Performance |
| Timeline |
| Slj Global Tbk |
| J Resources Asia |
Slj Global and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slj Global and J Resources
The main advantage of trading using opposite Slj Global and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slj Global position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' long position.| Slj Global vs. Solusi Bangun Indonesia | Slj Global vs. Bakrie Sumatera Plantations | Slj Global vs. Total Bangun Persada | Slj Global vs. Berlian Laju Tanker |
| J Resources vs. Merdeka Copper Gold | J Resources vs. Golden Eagle Energy | J Resources vs. Rukun Raharja Tbk | J Resources vs. Wilton Makmur Indonesia |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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