Correlation Between Sunindo Adipersada and J Resources
Can any of the company-specific risk be diversified away by investing in both Sunindo Adipersada and J Resources 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 Sunindo Adipersada and J Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunindo Adipersada Tbk and J Resources Asia, you can compare the effects of market volatilities on Sunindo Adipersada and J Resources 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 Sunindo Adipersada with a short position of J Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunindo Adipersada and J Resources.
Diversification Opportunities for Sunindo Adipersada and J Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunindo and PSAB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunindo Adipersada Tbk and J Resources Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Resources Asia and Sunindo Adipersada 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 Sunindo Adipersada Tbk are associated (or correlated) with J Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Resources Asia has no effect on the direction of Sunindo Adipersada i.e., Sunindo Adipersada and J Resources go up and down completely randomly.
Pair Corralation between Sunindo Adipersada and J Resources
Assuming the 90 days trading horizon Sunindo Adipersada Tbk is expected to under-perform the J Resources. But the stock apears to be less risky and, when comparing its historical volatility, Sunindo Adipersada Tbk is 1.19 times less risky than J Resources. The stock trades about -0.15 of its potential returns per unit of risk. The J Resources Asia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,800 in J Resources Asia on October 25, 2024 and sell it today you would earn a total of 15,200 from holding J Resources Asia or generate 172.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunindo Adipersada Tbk vs. J Resources Asia
Performance |
| Timeline |
| Sunindo Adipersada Tbk |
| J Resources Asia |
Sunindo Adipersada and J Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunindo Adipersada and J Resources
The main advantage of trading using opposite Sunindo Adipersada and J Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunindo Adipersada position performs unexpectedly, J Resources 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 J Resources will offset losses from the drop in J Resources' long position.| Sunindo Adipersada vs. Guna Timur Raya | Sunindo Adipersada vs. Yelooo Integra Datanet | Sunindo Adipersada vs. Agro Yasa Lestari | Sunindo Adipersada vs. Sinergi Inti Plastindo |
| J Resources vs. Merdeka Copper Gold | J Resources vs. Golden Eagle Energy | J Resources vs. Rukun Raharja Tbk | J Resources vs. Wilton Makmur Indonesia |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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