Correlation Between Indosterling Technomedia and Jakarta Setiabudi
Can any of the company-specific risk be diversified away by investing in both Indosterling Technomedia and Jakarta Setiabudi 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 Setiabudi 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 Setiabudi Internasional, you can compare the effects of market volatilities on Indosterling Technomedia and Jakarta Setiabudi 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 Setiabudi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indosterling Technomedia and Jakarta Setiabudi.
Diversification Opportunities for Indosterling Technomedia and Jakarta Setiabudi
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 Setiabudi Internasiona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakarta Setiabudi 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 Setiabudi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakarta Setiabudi has no effect on the direction of Indosterling Technomedia i.e., Indosterling Technomedia and Jakarta Setiabudi go up and down completely randomly.
Pair Corralation between Indosterling Technomedia and Jakarta Setiabudi
Assuming the 90 days trading horizon Indosterling Technomedia Tbk is expected to under-perform the Jakarta Setiabudi. But the stock apears to be less risky and, when comparing its historical volatility, Indosterling Technomedia Tbk is 1.97 times less risky than Jakarta Setiabudi. The stock trades about -0.34 of its potential returns per unit of risk. The Jakarta Setiabudi Internasional is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 83,969 in Jakarta Setiabudi Internasional on September 3, 2024 and sell it today you would earn a total of 861,031 from holding Jakarta Setiabudi Internasional or generate 1025.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Indosterling Technomedia Tbk vs. Jakarta Setiabudi Internasiona
Performance |
| Timeline |
| Indosterling Technomedia |
| Jakarta Setiabudi |
Indosterling Technomedia and Jakarta Setiabudi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indosterling Technomedia and Jakarta Setiabudi
The main advantage of trading using opposite Indosterling Technomedia and Jakarta Setiabudi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indosterling Technomedia position performs unexpectedly, Jakarta Setiabudi 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 Setiabudi will offset losses from the drop in Jakarta Setiabudi's long position.| Indosterling Technomedia vs. Indointernet Tbk PT | Indosterling Technomedia vs. Multipolar Technology Tbk | Indosterling Technomedia vs. PT Data Sinergitama | Indosterling Technomedia vs. PT Techno9 Indonesia |
| Jakarta Setiabudi vs. Mitra Pinasthika Mustika | Jakarta Setiabudi vs. Jakarta Int Hotels | Jakarta Setiabudi vs. Asuransi Harta Aman | Jakarta Setiabudi vs. Indosterling Technomedia 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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