Correlation Between Timah Persero and Jasa Marga
Can any of the company-specific risk be diversified away by investing in both Timah Persero and Jasa Marga 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 Timah Persero and Jasa Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timah Persero Tbk and Jasa Marga Tbk, you can compare the effects of market volatilities on Timah Persero and Jasa Marga 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 Timah Persero with a short position of Jasa Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timah Persero and Jasa Marga.
Diversification Opportunities for Timah Persero and Jasa Marga
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Timah and Jasa is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Timah Persero Tbk and Jasa Marga Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasa Marga Tbk and Timah Persero 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 Timah Persero Tbk are associated (or correlated) with Jasa Marga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasa Marga Tbk has no effect on the direction of Timah Persero i.e., Timah Persero and Jasa Marga go up and down completely randomly.
Pair Corralation between Timah Persero and Jasa Marga
Assuming the 90 days trading horizon Timah Persero is expected to generate 1.77 times less return on investment than Jasa Marga. In addition to that, Timah Persero is 1.59 times more volatile than Jasa Marga Tbk. It trades about 0.02 of its total potential returns per unit of risk. Jasa Marga Tbk is currently generating about 0.05 per unit of volatility. If you would invest 327,215 in Jasa Marga Tbk on August 27, 2024 and sell it today you would earn a total of 132,785 from holding Jasa Marga Tbk or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.77% |
| Values | Daily Returns |
Timah Persero Tbk vs. Jasa Marga Tbk
Performance |
| Timeline |
| Timah Persero Tbk |
| Jasa Marga Tbk |
Timah Persero and Jasa Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timah Persero and Jasa Marga
The main advantage of trading using opposite Timah Persero and Jasa Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timah Persero position performs unexpectedly, Jasa Marga 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 Jasa Marga will offset losses from the drop in Jasa Marga's long position.| Timah Persero vs. Kedaung Indah Can | Timah Persero vs. Langgeng Makmur Industri | Timah Persero vs. Kabelindo Murni Tbk | Timah Persero vs. Mustika Ratu Tbk |
| Jasa Marga vs. Semen Indonesia Persero | Jasa Marga vs. Wijaya Karya Beton | Jasa Marga vs. Perusahaan Gas Negara | Jasa Marga vs. PT Indofood Sukses |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |