Correlation Between PKSHA TECHNOLOGY and PT Jasa

Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY and PT Jasa 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 PKSHA TECHNOLOGY and PT Jasa into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and PT Jasa Marga, you can compare the effects of market volatilities on PKSHA TECHNOLOGY and PT Jasa 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 PKSHA TECHNOLOGY with a short position of PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and PT Jasa.

Diversification Opportunities for PKSHA TECHNOLOGY and PT Jasa

-0.44

Correlation Coefficient

PKSHA TECHNOLOGY  PT Jasa

Very good diversification

The 3 months correlation between PKSHA and 0JM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC are associated (or correlated) with PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and PT Jasa go up and down completely randomly.

Pair Corralation between PKSHA TECHNOLOGY and PT Jasa

Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 0.83 times more return on investment than PT Jasa. However, PKSHA TECHNOLOGY INC is 1.2 times less risky than PT Jasa. It trades about 0.06 of its potential returns per unit of risk. PT Jasa Marga is currently generating about -0.02 per unit of risk. If you would invest  2,140  in PKSHA TECHNOLOGY INC on October 12, 2024 and sell it today you would earn a total of  200.00  from holding PKSHA TECHNOLOGY INC or generate 9.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

PKSHA TECHNOLOGY INC  vs.  PT Jasa Marga

PKSHA TECHNOLOGY INC

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PKSHA TECHNOLOGY INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PKSHA TECHNOLOGY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

PT Jasa Marga

Risk-Adjusted Performance

0 of 100

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 nearly stable basic indicators, PT Jasa is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PKSHA TECHNOLOGY and PT Jasa

The main advantage of trading using opposite PKSHA TECHNOLOGY and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY position performs unexpectedly, PT Jasa 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 Jasa will offset losses from the drop in PT Jasa's long position.

The idea behind PKSHA TECHNOLOGY INC and PT Jasa Marga 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.

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.