Correlation Between Urban Jakarta and PT Winner
Can any of the company-specific risk be diversified away by investing in both Urban Jakarta and PT Winner 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 PT Winner 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 PT Winner Nusantara, you can compare the effects of market volatilities on Urban Jakarta and PT Winner 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 PT Winner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Jakarta and PT Winner.
Diversification Opportunities for Urban Jakarta and PT Winner
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Urban and WINR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Urban Jakarta Propertindo and PT Winner Nusantara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Winner Nusantara 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 PT Winner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Winner Nusantara has no effect on the direction of Urban Jakarta i.e., Urban Jakarta and PT Winner go up and down completely randomly.
Pair Corralation between Urban Jakarta and PT Winner
Assuming the 90 days trading horizon Urban Jakarta Propertindo is expected to generate 1.22 times more return on investment than PT Winner. However, Urban Jakarta is 1.22 times more volatile than PT Winner Nusantara. It trades about 0.01 of its potential returns per unit of risk. PT Winner Nusantara is currently generating about -0.05 per unit of risk. If you would invest 17,600 in Urban Jakarta Propertindo on August 30, 2024 and sell it today you would lose (3,600) from holding Urban Jakarta Propertindo or give up 20.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Urban Jakarta Propertindo vs. PT Winner Nusantara
Performance |
| Timeline |
| Urban Jakarta Propertindo |
| PT Winner Nusantara |
Urban Jakarta and PT Winner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Jakarta and PT Winner
The main advantage of trading using opposite Urban Jakarta and PT Winner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Jakarta position performs unexpectedly, PT Winner 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 Winner will offset losses from the drop in PT Winner's long position.| Urban Jakarta vs. Pollux Properti Indonesia | Urban Jakarta vs. Jaya Sukses Makmur | Urban Jakarta vs. Natura City Developments | Urban Jakarta vs. Maha Properti Indonesia |
| PT Winner vs. Pollux Properti Indonesia | PT Winner vs. Maha Properti Indonesia | PT Winner vs. Mega Manunggal Property | PT Winner vs. Urban Jakarta Propertindo |
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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