Correlation Between PT Jasa and SCOR SE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PT Jasa and SCOR SE 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 PT Jasa and SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Jasa Marga and SCOR SE, you can compare the effects of market volatilities on PT Jasa and SCOR SE 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 PT Jasa with a short position of SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Jasa and SCOR SE.

Diversification Opportunities for PT Jasa and SCOR SE

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between 0JM and SCOR is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding PT Jasa Marga and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE and PT Jasa 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 PT Jasa Marga are associated (or correlated) with SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of PT Jasa i.e., PT Jasa and SCOR SE go up and down completely randomly.

Pair Corralation between PT Jasa and SCOR SE

Assuming the 90 days horizon PT Jasa Marga is expected to generate 1.17 times more return on investment than SCOR SE. However, PT Jasa is 1.17 times more volatile than SCOR SE. It trades about -0.03 of its potential returns per unit of risk. SCOR SE is currently generating about -0.04 per unit of risk. If you would invest  28.00  in PT Jasa Marga on September 24, 2024 and sell it today you would lose (6.00) from holding PT Jasa Marga or give up 21.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

PT Jasa Marga  vs.  SCOR SE

 Performance 
       Timeline  
PT Jasa Marga 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PT Jasa Marga has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
SCOR SE 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SCOR SE are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SCOR SE reported solid returns over the last few months and may actually be approaching a breakup point.

PT Jasa and SCOR SE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PT Jasa and SCOR SE

The main advantage of trading using opposite PT Jasa and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Jasa position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.
The idea behind PT Jasa Marga and SCOR SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
CEOs Directory
Screen CEOs from public companies around the world