Correlation Between Teladan Prima and PT Jhonlin
Can any of the company-specific risk be diversified away by investing in both Teladan Prima and PT Jhonlin 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 Teladan Prima and PT Jhonlin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladan Prima Agro and PT Jhonlin Agro, you can compare the effects of market volatilities on Teladan Prima and PT Jhonlin 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 Teladan Prima with a short position of PT Jhonlin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladan Prima and PT Jhonlin.
Diversification Opportunities for Teladan Prima and PT Jhonlin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teladan and JARR is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Teladan Prima Agro and PT Jhonlin Agro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jhonlin Agro and Teladan Prima 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 Teladan Prima Agro are associated (or correlated) with PT Jhonlin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jhonlin Agro has no effect on the direction of Teladan Prima i.e., Teladan Prima and PT Jhonlin go up and down completely randomly.
Pair Corralation between Teladan Prima and PT Jhonlin
Assuming the 90 days trading horizon Teladan Prima Agro is expected to generate 0.48 times more return on investment than PT Jhonlin. However, Teladan Prima Agro is 2.09 times less risky than PT Jhonlin. It trades about -0.32 of its potential returns per unit of risk. PT Jhonlin Agro is currently generating about -0.17 per unit of risk. If you would invest 56,000 in Teladan Prima Agro on August 30, 2024 and sell it today you would lose (4,500) from holding Teladan Prima Agro or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladan Prima Agro vs. PT Jhonlin Agro
Performance |
| Timeline |
| Teladan Prima Agro |
| PT Jhonlin Agro |
Teladan Prima and PT Jhonlin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladan Prima and PT Jhonlin
The main advantage of trading using opposite Teladan Prima and PT Jhonlin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladan Prima position performs unexpectedly, PT Jhonlin 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 PT Jhonlin will offset losses from the drop in PT Jhonlin's long position.| Teladan Prima vs. Sumber Tani Agung | Teladan Prima vs. Wir Asia Tbk | Teladan Prima vs. Triputra Agro Persada | Teladan Prima vs. Net Visi Media |
| PT Jhonlin vs. PT Dewi Shri | PT Jhonlin vs. Habco Trans Maritima | PT Jhonlin vs. PT Cilacap Samudera | PT Jhonlin vs. PT Sari Kreasi |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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