Correlation Between Urban Jakarta and Jaya Sukses
Can any of the company-specific risk be diversified away by investing in both Urban Jakarta and Jaya Sukses 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 Urban Jakarta and Jaya Sukses into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Jakarta Propertindo and Jaya Sukses Makmur, you can compare the effects of market volatilities on Urban Jakarta and Jaya Sukses 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 Urban Jakarta with a short position of Jaya Sukses. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Jakarta and Jaya Sukses.
Diversification Opportunities for Urban Jakarta and Jaya Sukses
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Urban and Jaya is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Urban Jakarta Propertindo and Jaya Sukses Makmur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaya Sukses Makmur and Urban Jakarta 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 Urban Jakarta Propertindo are associated (or correlated) with Jaya Sukses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaya Sukses Makmur has no effect on the direction of Urban Jakarta i.e., Urban Jakarta and Jaya Sukses go up and down completely randomly.
Pair Corralation between Urban Jakarta and Jaya Sukses
Assuming the 90 days trading horizon Urban Jakarta Propertindo is expected to generate 46.11 times more return on investment than Jaya Sukses. However, Urban Jakarta is 46.11 times more volatile than Jaya Sukses Makmur. It trades about 0.05 of its potential returns per unit of risk. Jaya Sukses Makmur is currently generating about 0.31 per unit of risk. If you would invest 13,600 in Urban Jakarta Propertindo on August 29, 2024 and sell it today you would earn a total of 400.00 from holding Urban Jakarta Propertindo or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Jakarta Propertindo vs. Jaya Sukses Makmur
Performance |
| Timeline |
| Urban Jakarta Propertindo |
| Jaya Sukses Makmur |
Urban Jakarta and Jaya Sukses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Jakarta and Jaya Sukses
The main advantage of trading using opposite Urban Jakarta and Jaya Sukses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Jakarta position performs unexpectedly, Jaya Sukses 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 Jaya Sukses will offset losses from the drop in Jaya Sukses' long position.| Urban Jakarta vs. Jaya Sukses Makmur | Urban Jakarta vs. Modernland Realty Ltd | Urban Jakarta vs. Suryamas Dutamakmur Tbk | Urban Jakarta vs. Natura City Developments |
| Jaya Sukses vs. Pollux Properti Indonesia | Jaya Sukses vs. MNC Studios International | Jaya Sukses vs. MAP Aktif Adiperkasa | Jaya Sukses vs. Trimitra Propertindo 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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