Correlation Between Jaya Swarasa and Dayamitra Telekomunikasi
Can any of the company-specific risk be diversified away by investing in both Jaya Swarasa and Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi PT, you can compare the effects of market volatilities on Jaya Swarasa and Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Swarasa and Dayamitra Telekomunikasi.
Diversification Opportunities for Jaya Swarasa and Dayamitra Telekomunikasi
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jaya and Dayamitra is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Swarasa Agung and Dayamitra Telekomunikasi PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dayamitra Telekomunikasi has no effect on the direction of Jaya Swarasa i.e., Jaya Swarasa and Dayamitra Telekomunikasi go up and down completely randomly.
Pair Corralation between Jaya Swarasa and Dayamitra Telekomunikasi
Assuming the 90 days trading horizon Jaya Swarasa Agung is expected to under-perform the Dayamitra Telekomunikasi. In addition to that, Jaya Swarasa is 2.13 times more volatile than Dayamitra Telekomunikasi PT. It trades about -0.06 of its total potential returns per unit of risk. Dayamitra Telekomunikasi PT is currently generating about 0.01 per unit of volatility. If you would invest 61,382 in Dayamitra Telekomunikasi PT on November 28, 2024 and sell it today you would earn a total of 118.00 from holding Dayamitra Telekomunikasi PT or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jaya Swarasa Agung vs. Dayamitra Telekomunikasi PT
Performance |
| Timeline |
| Jaya Swarasa Agung |
| Dayamitra Telekomunikasi |
Jaya Swarasa and Dayamitra Telekomunikasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Swarasa and Dayamitra Telekomunikasi
The main advantage of trading using opposite Jaya Swarasa and Dayamitra Telekomunikasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Swarasa position performs unexpectedly, Dayamitra Telekomunikasi 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 Dayamitra Telekomunikasi will offset losses from the drop in Dayamitra Telekomunikasi's long position.| Jaya Swarasa vs. Wahana Inti MakmurTbk | Jaya Swarasa vs. Formosa Ingredient Factory | Jaya Swarasa vs. Triputra Agro Persada | Jaya Swarasa vs. Cisarua Mountain Dairy |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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