Correlation Between Weha Transportasi and Jasa Marga
Can any of the company-specific risk be diversified away by investing in both Weha Transportasi 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 Weha Transportasi and Jasa Marga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weha Transportasi Indonesia and Jasa Marga Tbk, you can compare the effects of market volatilities on Weha Transportasi 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 Weha Transportasi with a short position of Jasa Marga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weha Transportasi and Jasa Marga.
Diversification Opportunities for Weha Transportasi and Jasa Marga
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weha and Jasa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Weha Transportasi Indonesia 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 Weha Transportasi 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 Weha Transportasi Indonesia 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 Weha Transportasi i.e., Weha Transportasi and Jasa Marga go up and down completely randomly.
Pair Corralation between Weha Transportasi and Jasa Marga
Assuming the 90 days trading horizon Weha Transportasi Indonesia is expected to under-perform the Jasa Marga. In addition to that, Weha Transportasi is 1.84 times more volatile than Jasa Marga Tbk. It trades about -0.34 of its total potential returns per unit of risk. Jasa Marga Tbk is currently generating about -0.31 per unit of volatility. If you would invest 485,000 in Jasa Marga Tbk on September 1, 2024 and sell it today you would lose (40,000) from holding Jasa Marga Tbk or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weha Transportasi Indonesia vs. Jasa Marga Tbk
Performance |
| Timeline |
| Weha Transportasi |
| Jasa Marga Tbk |
Weha Transportasi and Jasa Marga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weha Transportasi and Jasa Marga
The main advantage of trading using opposite Weha Transportasi and Jasa Marga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weha Transportasi 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.| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia Tbk |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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