Correlation Between Tower Bersama and Japfa Comfeed
Can any of the company-specific risk be diversified away by investing in both Tower Bersama and Japfa Comfeed 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 Tower Bersama and Japfa Comfeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Bersama Infrastructure and Japfa Comfeed Indonesia, you can compare the effects of market volatilities on Tower Bersama and Japfa Comfeed 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 Tower Bersama with a short position of Japfa Comfeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Bersama and Japfa Comfeed.
Diversification Opportunities for Tower Bersama and Japfa Comfeed
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tower and Japfa is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tower Bersama Infrastructure and Japfa Comfeed Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japfa Comfeed Indonesia and Tower Bersama 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 Tower Bersama Infrastructure are associated (or correlated) with Japfa Comfeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japfa Comfeed Indonesia has no effect on the direction of Tower Bersama i.e., Tower Bersama and Japfa Comfeed go up and down completely randomly.
Pair Corralation between Tower Bersama and Japfa Comfeed
Assuming the 90 days trading horizon Tower Bersama is expected to generate 19.79 times less return on investment than Japfa Comfeed. But when comparing it to its historical volatility, Tower Bersama Infrastructure is 1.35 times less risky than Japfa Comfeed. It trades about 0.0 of its potential returns per unit of risk. Japfa Comfeed Indonesia is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 131,503 in Japfa Comfeed Indonesia on August 28, 2024 and sell it today you would earn a total of 46,997 from holding Japfa Comfeed Indonesia or generate 35.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower Bersama Infrastructure vs. Japfa Comfeed Indonesia
Performance |
| Timeline |
| Tower Bersama Infras |
| Japfa Comfeed Indonesia |
Tower Bersama and Japfa Comfeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower Bersama and Japfa Comfeed
The main advantage of trading using opposite Tower Bersama and Japfa Comfeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Bersama position performs unexpectedly, Japfa Comfeed 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 Japfa Comfeed will offset losses from the drop in Japfa Comfeed's long position.| Tower Bersama vs. Mnc Land Tbk | Tower Bersama vs. MNC Vision Networks | Tower Bersama vs. Medikaloka Hermina PT |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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