Correlation Between United Tractors and Jasa Marga
Can any of the company-specific risk be diversified away by investing in both United Tractors 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 United Tractors and Jasa Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Tractors Tbk and Jasa Marga Tbk, you can compare the effects of market volatilities on United Tractors 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 United Tractors with a short position of Jasa Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Tractors and Jasa Marga.
Diversification Opportunities for United Tractors and Jasa Marga
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and Jasa is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding United Tractors 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 United Tractors 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 United Tractors 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 United Tractors i.e., United Tractors and Jasa Marga go up and down completely randomly.
Pair Corralation between United Tractors and Jasa Marga
Assuming the 90 days trading horizon United Tractors is expected to generate 1.03 times less return on investment than Jasa Marga. In addition to that, United Tractors is 1.12 times more volatile than Jasa Marga Tbk. It trades about 0.07 of its total potential returns per unit of risk. Jasa Marga Tbk is currently generating about 0.08 per unit of volatility. If you would invest 431,000 in Jasa Marga Tbk on October 25, 2024 and sell it today you would earn a total of 11,000 from holding Jasa Marga Tbk or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
United Tractors Tbk vs. Jasa Marga Tbk
Performance |
| Timeline |
| United Tractors Tbk |
| Jasa Marga Tbk |
United Tractors and Jasa Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Tractors and Jasa Marga
The main advantage of trading using opposite United Tractors and Jasa Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Tractors 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.| United Tractors vs. Astra International Tbk | United Tractors vs. Bukit Asam Tbk | United Tractors vs. Semen Indonesia Persero | United Tractors vs. PT Indofood Sukses |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |