Correlation Between Triputra Agro and PT Jhonlin
Can any of the company-specific risk be diversified away by investing in both Triputra Agro and PT Jhonlin 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 Triputra Agro and PT Jhonlin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triputra Agro Persada and PT Jhonlin Agro, you can compare the effects of market volatilities on Triputra Agro and PT Jhonlin 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 Triputra Agro with a short position of PT Jhonlin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triputra Agro and PT Jhonlin.
Diversification Opportunities for Triputra Agro and PT Jhonlin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Triputra and JARR is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Triputra Agro Persada and PT Jhonlin Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jhonlin Agro and Triputra Agro 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 Triputra Agro Persada are associated (or correlated) with PT Jhonlin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jhonlin Agro has no effect on the direction of Triputra Agro i.e., Triputra Agro and PT Jhonlin go up and down completely randomly.
Pair Corralation between Triputra Agro and PT Jhonlin
Assuming the 90 days trading horizon Triputra Agro Persada is expected to generate 0.33 times more return on investment than PT Jhonlin. However, Triputra Agro Persada is 3.01 times less risky than PT Jhonlin. It trades about 0.16 of its potential returns per unit of risk. PT Jhonlin Agro is currently generating about 0.02 per unit of risk. If you would invest 40,899 in Triputra Agro Persada on August 24, 2024 and sell it today you would earn a total of 38,101 from holding Triputra Agro Persada or generate 93.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triputra Agro Persada vs. PT Jhonlin Agro
Performance |
| Timeline |
| Triputra Agro Persada |
| PT Jhonlin Agro |
Triputra Agro and PT Jhonlin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triputra Agro and PT Jhonlin
The main advantage of trading using opposite Triputra Agro and PT Jhonlin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triputra Agro position performs unexpectedly, PT Jhonlin 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 Jhonlin will offset losses from the drop in PT Jhonlin's long position.| Triputra Agro vs. Dharma Satya Nusantara | Triputra Agro vs. Saratoga Investama Sedaya | Triputra Agro vs. Surya Esa Perkasa | Triputra Agro vs. Elang Mahkota Teknologi |
| PT Jhonlin vs. PT Dewi Shri | PT Jhonlin vs. Habco Trans Maritima | PT Jhonlin vs. PT Cilacap Samudera | PT Jhonlin vs. PT Sari Kreasi |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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