Correlation Between Indosterling Technomedia and Jakarta Int
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Jakarta Int 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 Indosterling Technomedia and Jakarta Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indosterling Technomedia Tbk and Jakarta Int Hotels, you can compare the effects of market volatilities on Indosterling Technomedia and Jakarta Int 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 Indosterling Technomedia with a short position of Jakarta Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Jakarta Int.
Diversification Opportunities for Indosterling Technomedia and Jakarta Int
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indosterling and Jakarta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Indosterling Technomedia Tbk and Jakarta Int Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakarta Int Hotels and Indosterling Technomedia 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 Indosterling Technomedia Tbk are associated (or correlated) with Jakarta Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakarta Int Hotels has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Jakarta Int go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Jakarta Int
If you would invest 95,000 in Jakarta Int Hotels on September 2, 2024 and sell it today you would earn a total of 202,000 from holding Jakarta Int Hotels or generate 212.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Jakarta Int Hotels
Performance |
| Timeline |
| Indosterling Technomedia |
| Jakarta Int Hotels |
Indosterling Technomedia and Jakarta Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Jakarta Int
The main advantage of trading using opposite Indosterling Technomedia and Jakarta Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Jakarta Int 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 Jakarta Int will offset losses from the drop in Jakarta Int's long position.| Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. Digital Mediatama Maxima | Indosterling Technomedia vs. M Cash Integrasi | Indosterling Technomedia vs. NFC Indonesia PT |
| Jakarta Int vs. Jaya Real Property | Jakarta Int vs. Mnc Land Tbk | Jakarta Int vs. Kawasan Industri Jababeka | Jakarta Int vs. Duta Pertiwi Tbk |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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