Correlation Between Jaya Swarasa and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Jaya Swarasa and Dow Jones 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 Jaya Swarasa and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Swarasa Agung and Dow Jones Industrial, you can compare the effects of market volatilities on Jaya Swarasa and Dow Jones 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 Jaya Swarasa with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Swarasa and Dow Jones.
Diversification Opportunities for Jaya Swarasa and Dow Jones
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jaya and Dow is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Swarasa Agung and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Jaya Swarasa 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 Jaya Swarasa Agung are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Jaya Swarasa i.e., Jaya Swarasa and Dow Jones go up and down completely randomly.
Pair Corralation between Jaya Swarasa and Dow Jones
Assuming the 90 days trading horizon Jaya Swarasa Agung is expected to under-perform the Dow Jones. In addition to that, Jaya Swarasa is 1.75 times more volatile than Dow Jones Industrial. It trades about -0.41 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of volatility. If you would invest 4,223,305 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 248,901 from holding Dow Jones Industrial or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jaya Swarasa Agung vs. Dow Jones Industrial
Performance |
| Timeline |
Jaya Swarasa and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Jaya Swarasa Agung
Pair trading matchups for Jaya Swarasa
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Jaya Swarasa and Dow Jones
The main advantage of trading using opposite Jaya Swarasa and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Swarasa position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Jaya Swarasa vs. Sentra Food Indonesia | Jaya Swarasa vs. Buyung Poetra Sembada | Jaya Swarasa vs. Garudafood Putra Putri | Jaya Swarasa vs. Campina Ice Cream |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |