Correlation Between Jaya Swarasa and Wira Global
Can any of the company-specific risk be diversified away by investing in both Jaya Swarasa and Wira Global 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 Wira Global 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 Wira Global Solusi, you can compare the effects of market volatilities on Jaya Swarasa and Wira Global 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 Wira Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Swarasa and Wira Global.
Diversification Opportunities for Jaya Swarasa and Wira Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jaya and Wira is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Swarasa Agung and Wira Global Solusi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wira Global Solusi 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 Wira Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wira Global Solusi has no effect on the direction of Jaya Swarasa i.e., Jaya Swarasa and Wira Global go up and down completely randomly.
Pair Corralation between Jaya Swarasa and Wira Global
Assuming the 90 days trading horizon Jaya Swarasa Agung is expected to under-perform the Wira Global. But the stock apears to be less risky and, when comparing its historical volatility, Jaya Swarasa Agung is 1.23 times less risky than Wira Global. The stock trades about -0.41 of its potential returns per unit of risk. The Wira Global Solusi is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 9,200 in Wira Global Solusi on September 1, 2024 and sell it today you would lose (200.00) from holding Wira Global Solusi or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jaya Swarasa Agung vs. Wira Global Solusi
Performance |
| Timeline |
| Jaya Swarasa Agung |
| Wira Global Solusi |
Jaya Swarasa and Wira Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaya Swarasa and Wira Global
The main advantage of trading using opposite Jaya Swarasa and Wira Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Swarasa position performs unexpectedly, Wira Global 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 Wira Global will offset losses from the drop in Wira Global's long position.| Jaya Swarasa vs. Garudafood Putra Putri | Jaya Swarasa vs. Estika Tata Tiara | Jaya Swarasa vs. Campina Ice Cream | Jaya Swarasa vs. PT Wahana Interfood |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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